A growing industrial sector and record-high export activity are expected to be key drivers of increased U.S. natural gas demand this winter, according to a leading trade group.

Liquefied natural gas (LNG) exports are expected to grow by 16% over last winter, while pipeline exports to Mexico are expected to get an 18% boost, the Natural Gas Supply Association (NGSA) said in its annual winter outlook released Thursday. Combined, the increases are expected to boost exports by 2.7 Bcf/d compared with last winter.

Energy Venture Analysis (EVA), which prepared the report for NGSA, said LNG exports would remain a primary driver of domestic natural gas demand growth in this decade. The firm expects LNG feed gas deliveries to average 12.0 Bcf/d this winter, up 1.7 Bcf/d over last...