US natural gas consumption hit a record high in 2023 at 89.1 bcfd, marking an annual average increase of 4% since 2018, according to data from the US Energy Information Administration (EIA).
Monthly consumption records were consistently broken from March to November 2023. This surge can be attributed to the rise in natural gas usage in the electricity generation sector, filling the gap left by the declining capacity of coal-fired power plants, EIA noted.
In 2023, natural gas consumption in the residential sector dropped by 10% to 12.3 bcfd compared with 2022, while the commercial sector saw a 6% decrease of 0.5 bcfd. Industrial sector consumption held steady at 23.4 bcfd. The largest increase in natural gas usage across US economic sectors in 2023 occurred in the electric power sector with a 7% increase (2.2 bcfd), reaching a record high of 35.4 bcfd from 33.2 bcfd in 2022.
During the year, the electric power sector saw significant spikes in natural gas consumption during July and August, surpassing levels from the same months in 2022, despite cooler temperatures. Natural gas consumption in the electric power sector, which typically increases in July and August to meet air-conditioning demand, increased by 6% in July and August 2023 compared with those months in 2022, setting monthly records of 47.5 bcfd in July and 47.2 bcfd in August.
US coal production units are retiring as the nation’s coal fleet ages and coal-fired generators are replaced by generators using natural gas and renewables. Although natural gas-fired power generation increased by 6% in July and August of 2023 compared with a year earlier, overall electricity growth year-on-year was flat in July and rose just 3% in August, according to EIA.
The most natural gas consumed in the US in any month of 2023 occurred in January at 106.6 bcfd, but consumption was 8% less than in January 2022. Warmer-than-average temperatures reduced natural gas consumption in the residential and commercial sectors to meet space-heating demand.
