AGA reports record-breaking natural gas use, demand
On Friday, the American Gas Association (AGA) said natural gas demand for direct use and power generation continues to break records.
As part of the AGA’s annual Summer Outlook on the natural gas market, AGA VP for Energy Markets, Analysis and Standards Richard Meyer said the natural gas industry saw a net increase of 650,000 new natural gas customers in 2022 – effectively one new customer connected every minute. Natural gas power generation in 2024 is on track to increase 4.5 percent from the previous record set in 2023.
“Gas demand for electric power is likely going to set another record in 2024 or will be close to the record set in 2023. We’re also seeing the vital role of gas in maintaining energy system reliability during this cooling season,” Meyer said. “More new pipeline capacity will be added in 2024 than in any year since 2017, helping to meet this demand.”
According to AGA, power generation from natural gas increased by 112 Terawatt hours in 2023, while solar generation increased by 41 terawatt hours. Power generation by goal decreased 93 terawatt hours, generation from wind and other renewables declined by 25 terawatt hours.
The association said supplies of natural gas are relatively steady. Increased demand has returned natural gas commodity prices from historic lows to a more normal level. Storage levels for natural gas are currently 22 percent above the five-year average, officials said.
Despite record-breaking demand, AGA said, natural gas prices remain under $3 in much of the country
Texas saw the largest growth in natural gas customers with 84,000 new customers, with California coming in second with 46,000 new customers.
“This is not a red state or a blue state issue. This is a United States issue. Customers continue to prefer natural gas across political lines because of its affordability and reliability,” Meyer said.
