EIA: U. S. Industrial Natural Gas to Set 2026-2027 Record DAVENPORT, FL (DTN) – U.S. industrial natural gas consumption is expected to reach record levels in 2

DAVENPORT, FL (DTN) – U.S. industrial natural gas consumption is expected to reach record levels in 2026 and 2027 as modest manufacturing growth offsets efficiency improvements and supports slightly higher fuel use across the sector, according to the U.S. Energy Information Administration’s May Short-Term Energy Outlook (STEO).

Industrial natural gas demand averaged a record 23.6 Bcf/d in 2025, exceeding the previous annual high of 23.4 Bcf/d set in 2023. EIA forecasts industrial consumption will rise by 1.2%, or 0.3 Bcf/d, in 2026 and by an additional 1.7%, or 0.4 Bcf/d, in 2027.

EIA said growth in industrial natural gas use is expected to remain gradual as efficiency improvements continue reducing fuel requirements per unit of output. Facilities have increasingly adopted more efficient process heaters and heat-recovery technologies, although the agency projects rising industrial activity will more than offset those efficiency improvements over the next two years.

The agency’s natural gas-weighted manufacturing index is forecast to increase 1.5% in 2026 and 0.7% in 2027. Much of U.S. industrial demand comes from the chemicals sector, the largest industrial consumer of natural gas, where the fuel is used for process heat, electricity generation and as feedstock for products including methanol, fertilizer and hydrogen.

Industrial demand also follows a seasonal pattern, typically peaking during winter months. Consumption averaged 26.1 Bcf/d in January 2026 and is forecast to average 26.7 Bcf/d in January 2027. By comparison, EIA expects demand to reach seasonal lows around June, averaging about 22.6 Bcf/d in both 2026 and 2027.

Industrial natural gas use has remained relatively stable since 2018 outside of the pandemic-related decline in 2020 and subsequent recovery. Earlier expansion in petrochemical, ammonia and refining sectors, particularly along the Gulf Coast, raised baseline industrial demand, although EIA noted the pace of new capacity additions has slowed in recent years.