Natural gas demand in the U.S. industrial sector will reach a record level in 2022, then ease next year amid high prices and slowing economic activity, federal researchers said Monday.

Industrial Gas Demand

The Energy Information Administration (EIA) forecasts industrial consumption will increase by 2.4% this year to 8.3 Tcf after rising 1.9% in 2021. The jumps follow a pandemic-induced slump of 3% in 2020, though demand since 2010 has trended upward overall.

The long-running momentum and strength this year reflect industrial sector expansion, as well as an increased preference for natural gas over other energy sources such as coal, according to EIA.

Much of the 2022 increase comes from the chemicals subsector, the largest natural gas consumer in the industrial sector (29%), said EIA analyst Mike...