US industrial natural gas consumption to continue climbing to record levels

US industrial natural gas consumption is expected to continue reaching record levels through 2027, according to the US Energy Information Administration's (EIA) latest forecast. Industrial natural gas consumption averaged a record 23.6 bcfd in 2025, exceeding the previous record of 23.4 bcfd set in 2023.

EIA forecasts industrial natural gas demand will rise by 1.2% (0.3 bcfd) in 2026 and by 1.7% (0.4 bcfd) in 2027. The agency expects growth in industrial demand to track increases in the natural gas-weighted manufacturing index, which is forecast to increase by 1.5% in 2026 and 0.7% in 2027.

The chemicals subsector remains the largest industrial consumer of natural gas. The sector uses natural gas for heat generation, electricity generation, and as a feedstock for methanol, fertilizer, and hydrogen production.

According to EIA, industrial natural gas demand growth has remained gradual because gains in industrial activity have been partly offset by continued efficiency improvements. Technologies such as more efficient process heaters and heat-recovery systems have reduced the amount of natural gas required per unit of industrial output.

Industrial natural gas consumption is also expected to maintain its seasonal pattern. EIA said demand averaged 26.1 bcfd in January 2026 and is forecast to average 26.7 bcfd in January 2027. Summer demand is expected to remain lower, with consumption forecast at about 22.6 bcfd in both June 2026 and June 2027.

EIA said industrial natural gas consumption has remained relatively flat since 2018, aside from the pandemic-related decline in 2020 and the subsequent recovery in 2021 and 2022. The agency noted that relatively low US natural gas prices supported expansion in energy-intensive industries through the mid-2010s, including petrochemicals, ammonia production, and refining, particularly along the Gulf Coast. As a result, the industrial sector now consumes natural gas at a higher baseline rate, but the pace of new capacity additions has since slowed.