NEW YORK: US natural gas supply and demand will both rise to record highs in 2026, the US Energy Information Administration (EIA) says in its Short-Term Energy Outlook.
The EIA projected dry gas production will rise from a record 107.6 billion cu ft per day/bcfd (30 billion cu m) in 2025 to 111.2 bcfd in 2026 and 116 bcfd in 2027.
The agency also projected domestic gas consumption will rise from a record 91.9 bcfd in 2025 to 92 bcfd in 2026 and 94.8 bcfd in 2027.
The August production projection for 2026 was unchanged from the EIA’s July forecast of 111.2 bcfd.
But the demand projection was a little lower than the agency’s July forecast of 92.1 bcfd.
The agency forecast average US liquefied natural gas (LNG) exports would rise from a record 15.1 bcfd in 2025 to 17.4 bcfd in 2026 and 18.6 bcfd in 2027.
The EIA also projected gas inventories would rise to a decade high of four trillion cu ft in October, the biggest buffer the country has had ahead of peak winter heating season since 2016, due to rising output and lower consumption by LNG export facilities undergoing maintenance.
“More natural gas in inventories in the fall season provides a cushion for increased heating-related consumption during winter,” EIA administrator Tristan Abbey said.
With power generators expected to burn less coal, US coal production is expected to drop from 528.4 million tonnes in 2025 to 514.4 million tonnes in 2026. — Bloomberg
