Texas and Oklahoma Lead Second-Quarter Rise in US Industrial Natural Gas Demand
Key Takeaways
- •US industrial natural gas demand rose in the second quarter, with June deliveries hitting a record high for the month in EIA data going back to 2001.
- •Texas and Oklahoma led the gains in industrial natural gas demand.
- •Texas is the nation's largest industrial natural gas consumer, supported by petrochemical plants, refineries, and LNG export terminals along the Gulf Coast.
- •Oklahoma's industrial demand reflects its significant processing and manufacturing base as a major gas-producing state.
- •The EIA projects that industrial natural gas demand will continue to grow.
US industrial natural gas demand climbed during the second quarter, with June deliveries setting a record high for the month, according to US Energy Information Administration (EIA) data dating back to 2001.
At a Glance
- Texas and Oklahoma led the gains in industrial natural gas demand
- Industrial demand strengthened during the second quarter
- The EIA expects continued growth
The increase was led by Texas and Oklahoma, the data showed. The EIA, whose records extend to 2001, indicated that industrial deliveries in June reached their highest level ever recorded for that month.
Texas has long been the nation's largest industrial consumer of natural gas, reflecting its concentration of petrochemical plants, refineries, and LNG export terminals along the Gulf Coast, while Oklahoma hosts a significant processing and manufacturing base tied to its role as a major gas-producing state. Industrial demand in these states is closely watched as an indicator of broader factory and export-terminal activity, since industrial users typically consume gas under longer-term contracts than power generators.
The agency projects that industrial natural gas demand will continue to grow going forward.
Source: Natural Gas Intelligence
