EIA: US natural gas demand will reach record levels in 2026.

The U.S. Energy Information Administration announced in its Tuesday 'Short-Term Energy Outlook' that both the supply and demand of natural gas in the U.S. will reach record highs by 2026. The 'EIA' projected that dry gas production would rise from a record of 107.6 billion cubic feet per day (bcfd) in 2025, to 111.2 bcfd by 2026, and 116.0 bcfd by 2027. The agency projected that domestic gas consumption would rise from 91.9 billion cubic feet per day in 2025, to 92.0 in 2026, and then 94.8 in 2027. The EIA's August forecast for 2026 of?111.2 billion cubic feet per day was unchanged. Demand projections were slightly lower than July's forecast by the EIA of 92.1 bcfd. The agency predicted that average U.S. LNG exports will rise from 15.1 bcfd to 17.4 bcfd by 2026, and 18.6 bcfd by 2027. The EIA projected that?gas inventories will rise to around four trillion cubic foot in October. This is the largest buffer the country had before the peak winter heating period since 2016. It was due to rising production and lower consumption at LNG export facilities under maintenance.

In a recent press release, EIA Administrator Tristan Abbey stated that "more natural gas in inventory during the fall provides a cushion to increase heating-related consumption in winter." The EIA predicted that U.S. coal output would drop from its two-year-high of 528.4 millions short tons in?2025 to a low of 514.4 in?2026 and 496.6 in?2027. This would be the lowest level since 1963. Carbon dioxide emissions from fossil energy sources are expected to decline from a high of 4.904 billion tons in 2025, to 4.818 billion tons in 2026, as oil, coal and gas consumption decreases. Then, they will increase slightly in 2027, as gas usage increases. (Reporting and editing by Paul Simao, New York. Shariq Khan in New York.

(source: Reuters)