With the exception of the power generation market, “I don’t see a lot to get excited about” when it comes to natural gas demand, an official with Tudor, Pickering, Holt & Co. Securities Inc. (TPH) told NGI Tuesday.
Total U.S. gas demand in September was approximately 1,557 Bcf, up 98 Bcf from 1,459 Bcf in September 2008, thanks in large part to power generation gas demand.
“Industrial demand continues to languish year to year,” while the “electricity side continues to be strong,” said David Pursell, TPH managing director. The power generation market for natural gas “continues to show year-to-year improvement even though the economy is still weak.”
The Energy Information Administration’s (EIA) 914 data released Monday revealed that natural gas deliveries to power generation consumers amounted to 677,046 MMcf in September of this year, up from 603,377 MMcf in September 2008 (see Daily GPI, Dec. 1).
Gas deliveries to industrials, however, remained relatively flat year to year. Industrial gas demand in September was 477,459 MMcf compared to 474,651 MMcf in September 2008, the EIA said.
While natural gas has gained a bigger share of the generation market this year due to lower gas prices, Pursell is concerned that gas will lose ground in the coming year when gas prices increase.
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