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Released March 26, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Led by the electric power sector, U.S. natural gas consumption rose 10% in 2018, according to the U.S. Energy Information Administration (EIA), reaching a record high of 82.1 billion cubic feet per day (Bcf/d).
A combination of natural gas-fired power capacity additions and weather-related factors led to the jump, the EIA said on Monday, citing its Natural Gas Monthly report. The U.S. experienced several periods of extremely warm and cold weather in 2018, contributing to record-high natural gas consumption.
The electric power sector accounted for 29.1 Bcf/d of natural gas consumption in 2018, or 35% of total domestic U.S. consumption. Natural gas accounted for 35% of utility-scale power consumption last year, followed by coal (27%), nuclear (19%) and hydropower.
In 2018, about 14.5 gigawatts (GW) of net natural gas capacity were added, while almost 13 GW of coal-fired capacity were retired, according to the EIA.
Speaking at an industry outlook event earlier this year, Britt Burt, Industrial Info's vice president of Power Industry research, said that since 2013, about 105 GW has been retired in North America, of which 78 GW was coal-fired. Industrial Info is tracking about 22 GW of coal-fired capacity that is scheduled to close from 2019 through 2020, he added.
Click on the image at right for Industrial Info graphs showing power unit retirement and startup capacities from 2013 to 2020.
Natural gas has been the dominant fuel to replace capacity lost from coal-fired plant retirements, but the industry is now seeing "some slowdown on the natural gas side," Burt said. According to his presentation, North America saw about 20 GW of gas-fired plant capacity started up in 2018, but that level is expected to drop to just over 10 GW in 2019. For related information, see March 12, 2019, article - EIA: Majority of U.S. Power Capacity Installed in 2018 Was Natural Gas-fired.
However, there is some potential for additional growth in natural gas-fired power capacity, "depending on what happens with battery storage," Burt said. "Absent battery storage coming into play, in a timely fashion, and at a reasonable cost, it certainly opens the door for more natural gas-fired capacity to be built to back up the renewable energy projects that are there. And then the other side of this, places like Texas ... parts of the Midwest and Ontario, we are seeing reserve margins tighten a bit, so I think there is potential there for more development of natural gas-fired capacity."
In the U.S., Industrial Info is tracking more than $15 billion worth of natural gas-fired project activity that has a high or medium-probability of kicking off construction this year.
Click on the image at right for a graph showing U.S. high- and medium-probability natural gas-fired project kickoffs in 2019.
In Elwood, Illinois, J-Power (Tokyo, Japan) plans to start construction in the third quarter on the $1 billion Jackson Generating Station, an 1,100-megawatt (MW) combined-cycle facility. Kiewit Power Constructors Company (Lenexa, Kansas) is performing preliminary engineering. For more information, see Industrial Info's project report.
In Fort Lauderdale, Florida, NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) plans to kick off construction in the third quarter on the $888 million Dania Beach Clean Energy Center, which will generate 1,200 MW upon its planned completion in mid-2022. Florida Power & Light, a NextEra subsidiary, is working with consultant Golder Associates (Toronto, Ontario) and Black & Veatch Incorporated (Overland Park, Kansas), which will provide engineering, procurement and construction services. For more information, see Industrial Info's project report.
In Byesville, Ohio, Apex Power Group LLC (Mooresville, Indiana) plans to start construction in the second quarter on the nearly $1.5 billion Guernsey Power Station, a 1,650-MW facility that will produce enough electricity to power nearly 1.5 million homes. The plant will be located in southern Guernsey County in Southeastern Ohio, in the heart of the state's Utica and Marcellus shale gas development area, according to its developer. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
A combination of natural gas-fired power capacity additions and weather-related factors led to the jump, the EIA said on Monday, citing its Natural Gas Monthly report. The U.S. experienced several periods of extremely warm and cold weather in 2018, contributing to record-high natural gas consumption.
The electric power sector accounted for 29.1 Bcf/d of natural gas consumption in 2018, or 35% of total domestic U.S. consumption. Natural gas accounted for 35% of utility-scale power consumption last year, followed by coal (27%), nuclear (19%) and hydropower.
In 2018, about 14.5 gigawatts (GW) of net natural gas capacity were added, while almost 13 GW of coal-fired capacity were retired, according to the EIA.
Speaking at an industry outlook event earlier this year, Britt Burt, Industrial Info's vice president of Power Industry research, said that since 2013, about 105 GW has been retired in North America, of which 78 GW was coal-fired. Industrial Info is tracking about 22 GW of coal-fired capacity that is scheduled to close from 2019 through 2020, he added.
Natural gas has been the dominant fuel to replace capacity lost from coal-fired plant retirements, but the industry is now seeing "some slowdown on the natural gas side," Burt said. According to his presentation, North America saw about 20 GW of gas-fired plant capacity started up in 2018, but that level is expected to drop to just over 10 GW in 2019. For related information, see March 12, 2019, article - EIA: Majority of U.S. Power Capacity Installed in 2018 Was Natural Gas-fired.
However, there is some potential for additional growth in natural gas-fired power capacity, "depending on what happens with battery storage," Burt said. "Absent battery storage coming into play, in a timely fashion, and at a reasonable cost, it certainly opens the door for more natural gas-fired capacity to be built to back up the renewable energy projects that are there. And then the other side of this, places like Texas ...
In the U.S., Industrial Info is tracking more than $15 billion worth of natural gas-fired project activity that has a high or medium-probability of kicking off construction this year.
In Elwood, Illinois, J-Power (Tokyo, Japan) plans to start construction in the third quarter on the $1 billion Jackson Generating Station, an 1,100-megawatt (MW) combined-cycle facility. Kiewit Power Constructors Company (Lenexa, Kansas) is performing preliminary engineering. For more information, see Industrial Info's project report.
In Fort Lauderdale, Florida, NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) plans to kick off construction in the third quarter on the $888 million Dania Beach Clean Energy Center, which will generate 1,200 MW upon its planned completion in mid-2022. Florida Power & Light, a NextEra subsidiary, is working with consultant Golder Associates (Toronto, Ontario) and Black & Veatch Incorporated (Overland Park, Kansas), which will provide engineering, procurement and construction services. For more information, see Industrial Info's project report.
In Byesville, Ohio, Apex Power Group LLC (Mooresville, Indiana) plans to start construction in the second quarter on the nearly $1.5 billion Guernsey Power Station, a 1,650-MW facility that will produce enough electricity to power nearly 1.5 million homes. The plant will be located in southern Guernsey County in Southeastern Ohio, in the heart of the state's Utica and Marcellus shale gas development area, according to its developer. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
