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Released August 20, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land,
Texas)--Milder weather across much of the continental United States led to a decline in demand for natural gas, though data show the implied storage level is below year-ago levels.
A regular weekday report from IIR Energy showed total U.S. natural gas demand declined by 2.6 billion cubic feet per day (Bcf/d) from Sunday to average 76 Bcf/d over the first two days of the week.
Data showed that only demand from the industrial sector increased, while consumer demand declined by around 0.7 Bcf/d on milder weather. Hurricane Erin is creating tropical storm conditions for the Carolinas this week, but isn't expected to make landfall. Two other systems are close behind Erin that could pose a threat to the U.S. mainland.
Subscribers to IIR Energy's Breaking Energy News can see a two-week weather outlook here.
Total inland natural gas production, meanwhile, has been steady over the last several days at around 107 billion cubic feet per day (Bcf/d). All major basins are reporting year-over-year gains in output.
Gas production in the Bakken was off slightly relative to more recent levels, though state regulators are undeterred. The North Dakota Public Service Commission last week approved plans by Basin Electric Power Cooperative (Bismarck, North Dakota) to construct the natural gas-fired Bison Generation Station, which would be North Dakota's largest power plant with 1,490 megawatts of power capacity.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant Databases can click here to read the project report and here for the plant profile.
Elsewhere, the United States remains a net importer of natural gas from Canada despite lingering trade tensions between the North American neighbors. Net imports are down marginally from year-ago levels, however.
Gas exports to Mexico, meanwhile, hit a record high of 8.39 Bcf/d last week, though dropped off to around 7.9 Bcf/d as of Tuesday. Relative strength in exports reflects ongoing high demand from Mexico's power sector.
Even more gas is leaving North America in the form of liquefied natural gas (LNG). Apart from world-record levels of production, the nation is the leader in LNG exports. IIR Energy estimated around 15.3 billion cubic feet of natural gas was delivered to the eight operational LNG export terminals on Tuesday.
From exports to industrial demand, the domestic natural gas market may be getting squeezed. The implied storage level for July averaged 6.36 Bcf/d, down around 0.48 Bcf/d from the prior month. Levels as of Tuesday were closer to 5.88 Bcf/d.
Independent market analysts have said that, should production remain static and demand strains increase, storage levels may be depleted. That, in turn, could create future price shocks in a market already elevated relative to year-ago levels.
Henry Hub, the U.S. benchmark for the wholesale price of natural gas, was trading near $2.75 per million British thermal units. If federal estimates are accurate, it could spike as high as $4.20/MMBtu by next year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
A regular weekday report from IIR Energy showed total U.S. natural gas demand declined by 2.6 billion cubic feet per day (Bcf/d) from Sunday to average 76 Bcf/d over the first two days of the week.
Data showed that only demand from the industrial sector increased, while consumer demand declined by around 0.7 Bcf/d on milder weather. Hurricane Erin is creating tropical storm conditions for the Carolinas this week, but isn't expected to make landfall. Two other systems are close behind Erin that could pose a threat to the U.S. mainland.
Subscribers to IIR Energy's Breaking Energy News can see a two-week weather outlook here.
Total inland natural gas production, meanwhile, has been steady over the last several days at around 107 billion cubic feet per day (Bcf/d). All major basins are reporting year-over-year gains in output.
Gas production in the Bakken was off slightly relative to more recent levels, though state regulators are undeterred. The North Dakota Public Service Commission last week approved plans by Basin Electric Power Cooperative (Bismarck, North Dakota) to construct the natural gas-fired Bison Generation Station, which would be North Dakota's largest power plant with 1,490 megawatts of power capacity.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant Databases can click here to read the project report and here for the plant profile.
Elsewhere, the United States remains a net importer of natural gas from Canada despite lingering trade tensions between the North American neighbors. Net imports are down marginally from year-ago levels, however.
Gas exports to Mexico, meanwhile, hit a record high of 8.39 Bcf/d last week, though dropped off to around 7.9 Bcf/d as of Tuesday. Relative strength in exports reflects ongoing high demand from Mexico's power sector.
Even more gas is leaving North America in the form of liquefied natural gas (LNG). Apart from world-record levels of production, the nation is the leader in LNG exports. IIR Energy estimated around 15.3 billion cubic feet of natural gas was delivered to the eight operational LNG export terminals on Tuesday.
From exports to industrial demand, the domestic natural gas market may be getting squeezed. The implied storage level for July averaged 6.36 Bcf/d, down around 0.48 Bcf/d from the prior month. Levels as of Tuesday were closer to 5.88 Bcf/d.
Independent market analysts have said that, should production remain static and demand strains increase, storage levels may be depleted. That, in turn, could create future price shocks in a market already elevated relative to year-ago levels.
Henry Hub, the U.S. benchmark for the wholesale price of natural gas, was trading near $2.75 per million British thermal units. If federal estimates are accurate, it could spike as high as $4.20/MMBtu by next year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
