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Released September 04, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Although overall demand is on the rise, the U.S. natural gas sector has underperformed so far in September, with storage levels coming in below year-ago levels.
In August, total U.S. natural gas demand equated to 71.45 billion cubic feet per day (Bcf/d), nearly 5% above year-ago levels. Nearly 60% of that demand came from the domestic power sector. The U.S. Department of Energy (DOE) said it was expecting milder weather, however, with electricity sales to the residential sector expected to decline amid forecasts of a warmer-than-average winter.
Maria Sanchez, a senior natural gas analyst at IIR Energy, said the nation still has plenty of resources, with new takeaway capacity for natural gas from the Permian Basin supporting liquefied natural gas (LNG) feed gas.
"On domestic demand, I see it growing but slower than expected, particularly the gas consumption for power," she said, adding that demand from the growing number of data centers has yet to impact the overall balance so far.
IIR Energy subscribers can click here to view a sample of IIR Energy's daily natural gas report.
On deliveries, the U.S. remains a net exporter of natural gas to Mexico. Data from IIR Energy show the U.S. delivered about 7.6 Bcf/d on average to Mexico last month, relatively unchanged from year-ago levels.
Commitments to exports of LNG accounted for the bulk of the drain on domestic supplies last month, with the amount of feed gas running to the eight operational terminals averaging 16 Bcf/d in August, some 14% higher than during the same period last year.
Under former President Joe Biden, the U.S. passed Australia and Qatar to become the world leader in LNG exports, providing energy security to European allies as they moved away from Russian supplies as punishment for the 2022 invasion of Ukraine.
President Donald Trump wants even more, declaring a national emergency to support the domestic industry. His trade policies, however, may complicate offtake agreements for LNG, despite the bevy of new projects backed by the administration so far.
Billions of cubic feet of LNG are committed for the future, on top of the additional volumes expected from upgrades to the Corpus Christi (Texas), Golden Pass (Texas), Plaquemines (Louisiana) and Port Arthur (Texas) facilities.
Of those, Plaquemines, operated by Venture Global (Arlington, Virginia), which began commercial operations in December, has helped ensure U.S. dominance in the LNG sector. Its capacity to process some 3.8 Bcf/d of natural gas into LNG makes it the second largest terminal in the nation, behind Sabine Pass in Louisiana.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can click here for a detailed profile of the Plaquemines facility and click here for a profile of the Sabine Pass facility, operated by operated by Cheniere Energy (Houston, Texas).
Total inland natural gas production, meanwhile, averaged 108.2 Bcf/d, about 6% above the August 2024 average. So far in September, however, volumes are suppressed at around 106 Bcf/d as of Wednesday.
IIR Energy showed production declines were widespread, from New Mexico to West Virginia, though it was Pennsylvania that saw the bulk of the decline at around 0.7 Bcf as of Wednesday.
Much of the decline was due to regular pipeline maintenance, particularly in the U.S. Northeast and the Appalachia region. Federal estimates show the Appalachia region is the largest gas producer in the country, yielding around 36.5 Bcf/d for 2025. That is projected to increase to 37.2 Bcf/d by next year, bucking national trends pointing to a slight production decline by 2026.
Trump has pledged to reshore much of the U.S. economy, while at the same time working to support the domestic oil and gas industry. His trade policies, however, have undermined some of the confidence in the U.S. economy and could lead to renewed inflationary strains.
The DOE said it was expecting residential consumers to pay 4% more on their electric bills this year.
"The increase in retail electricity prices this year comes as the cost of natural gas to the electric power sector was up more than 40% in 1H25 compared with a year earlier, with similar year-over-year increases forecast for the remainder of 2025," according to an August report by the DOE. "The average cost of natural gas for power generation in our forecast increases another 17% in 2026."
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).
In August, total U.S. natural gas demand equated to 71.45 billion cubic feet per day (Bcf/d), nearly 5% above year-ago levels. Nearly 60% of that demand came from the domestic power sector. The U.S. Department of Energy (DOE) said it was expecting milder weather, however, with electricity sales to the residential sector expected to decline amid forecasts of a warmer-than-average winter.
Maria Sanchez, a senior natural gas analyst at IIR Energy, said the nation still has plenty of resources, with new takeaway capacity for natural gas from the Permian Basin supporting liquefied natural gas (LNG) feed gas.
"On domestic demand, I see it growing but slower than expected, particularly the gas consumption for power," she said, adding that demand from the growing number of data centers has yet to impact the overall balance so far.
IIR Energy subscribers can click here to view a sample of IIR Energy's daily natural gas report.
On deliveries, the U.S. remains a net exporter of natural gas to Mexico. Data from IIR Energy show the U.S. delivered about 7.6 Bcf/d on average to Mexico last month, relatively unchanged from year-ago levels.
Commitments to exports of LNG accounted for the bulk of the drain on domestic supplies last month, with the amount of feed gas running to the eight operational terminals averaging 16 Bcf/d in August, some 14% higher than during the same period last year.
Under former President Joe Biden, the U.S. passed Australia and Qatar to become the world leader in LNG exports, providing energy security to European allies as they moved away from Russian supplies as punishment for the 2022 invasion of Ukraine.
President Donald Trump wants even more, declaring a national emergency to support the domestic industry. His trade policies, however, may complicate offtake agreements for LNG, despite the bevy of new projects backed by the administration so far.
Billions of cubic feet of LNG are committed for the future, on top of the additional volumes expected from upgrades to the Corpus Christi (Texas), Golden Pass (Texas), Plaquemines (Louisiana) and Port Arthur (Texas) facilities.
Of those, Plaquemines, operated by Venture Global (Arlington, Virginia), which began commercial operations in December, has helped ensure U.S. dominance in the LNG sector. Its capacity to process some 3.8 Bcf/d of natural gas into LNG makes it the second largest terminal in the nation, behind Sabine Pass in Louisiana.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can click here for a detailed profile of the Plaquemines facility and click here for a profile of the Sabine Pass facility, operated by operated by Cheniere Energy (Houston, Texas).
Total inland natural gas production, meanwhile, averaged 108.2 Bcf/d, about 6% above the August 2024 average. So far in September, however, volumes are suppressed at around 106 Bcf/d as of Wednesday.
IIR Energy showed production declines were widespread, from New Mexico to West Virginia, though it was Pennsylvania that saw the bulk of the decline at around 0.7 Bcf as of Wednesday.
Much of the decline was due to regular pipeline maintenance, particularly in the U.S. Northeast and the Appalachia region. Federal estimates show the Appalachia region is the largest gas producer in the country, yielding around 36.5 Bcf/d for 2025. That is projected to increase to 37.2 Bcf/d by next year, bucking national trends pointing to a slight production decline by 2026.
Trump has pledged to reshore much of the U.S. economy, while at the same time working to support the domestic oil and gas industry. His trade policies, however, have undermined some of the confidence in the U.S. economy and could lead to renewed inflationary strains.
The DOE said it was expecting residential consumers to pay 4% more on their electric bills this year.
"The increase in retail electricity prices this year comes as the cost of natural gas to the electric power sector was up more than 40% in 1H25 compared with a year earlier, with similar year-over-year increases forecast for the remainder of 2025," according to an August report by the DOE. "The average cost of natural gas for power generation in our forecast increases another 17% in 2026."
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).
