U.S. Natural Gas Plants Eye Maintenance as Demand Booms

July 3, 2023--Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. natural gas demand increased 43% from 2012 to 2022, driven by 116% growth in Louisiana and Texas, according to recent findings by the U.S. Energy Information Administration (EIA). While growing demand for liquefied natural gas (LNG) feedstock drove activity along the Gulf Coast, where exports are a booming industry, increased gas-fired domestic generation was the second-most significant factor, which the EIA attributed to coal-to-gas switching and rising demand for air conditioning.

Industrial Info is tracking about three dozen maintenance related-projects at U.S. gas-fired power plants that are set to kick off in the third quarter, most of which are set to begin in September. The importance of proper maintenance at U.S. gas-fired power plants cannot be overstated. While most of the political energy surrounding the U.S energy market is in renewables, natural gas developers are emphasizing the fossil fuel's role as a "bridge" between the long-gone years of coal's dominance in the market, and the emerging role of wind, solar and other renewable sources. But this transition likely will cover decades, and gas-fired power plants will need to be consistently in their best condition to handle growing demand during that time.

Companies with gas-fired power maintenance projects set to kick off in the third quarter include NRG Energy Incorporated (NYSE:NRG), TexGen Power LLC, Associated Electric Cooperative Incorporated, Starwood Capital Group and Vistra Energy Corporation (NYSE:VST).