EIA expects increasing consumption of natural gas by U.S. industry in 2021 and 2022

<div><font face="tahoma"><b>EIA expects increasing consumption of natural gas by U.S. industry in 2021 and 2022</b><br></font></div><div><font face="tahoma"><br></font></div><div><font face="tahoma">SEPTEMBER 24, 2021<b><br></b></font></div><div><font face="tahoma"><br></font></div><div align="center"><font face="tahoma"><img src="https://download.qtmarketcenter.com/jay/eiaSep24-1.JPG"></font></div><div><font face="tahoma"><br></font></div><div><p style="margin: 0px; padding: 8px 0px 10px; border: 0px none; font-weight: 400; font-style: normal; font-size: 12px; vertical-align: baseline; line-height: 1.3em; color: rgb(51, 51, 51); font-variant-ligatures: normal; font-variant-caps: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><font face="tahoma">Based on our September<span>&nbsp;</span><a href="https://www.eia.gov/outlooks/steo/" style="margin-top: 0px; margin-right: inherit; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: inherit; padding-bottom: 0px; padding-left: 0px; border: 0px none; font-weight: inherit; font-style: inherit; font-size: 12px; vertical-align: baseline; color: rgb(24, 155, 215); text-decoration: none; background: inherit;"><em style="margin: 0px; padding: 0px; border: 0px none; font-weight: inherit; font-style: italic; font-size: 12px; vertical-align: baseline;">Short-Term Energy Outlook</em></a>, we expect industrial sector natural gas consumption to rise throughout 2021 and to exceed pre-pandemic 2019 levels. We forecast the growth to continue into 2022, and natural gas delivered to industrial consumers will average 23.8 billion cubic feet per day (Bcf/d) that year. If realized, this amount would be near the current record high for annual industrial natural gas consumption set in the early 1970s.</font></p><p style="margin: 0px; padding: 8px 0px 10px; border: 0px none; font-weight: 400; font-style: normal; font-size: 12px; vertical-align: baseline; line-height: 1.3em; color: rgb(51, 51, 51); font-variant-ligatures: normal; font-variant-caps: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><font face="tahoma">Many industrial processes have limited or no alternatives to natural gas for use as both fuel and feedstock, making industrial natural gas consumption relatively insensitive to short-term price fluctuations. Some value-added industrial products such as ammonia, methanol, and hydrogen that are produced from natural gas remain economically competitive even when natural gas prices are relatively high.</font></p><p style="margin: 0px; padding: 8px 0px 10px; border: 0px none; font-weight: 400; font-style: normal; font-size: 12px; vertical-align: baseline; line-height: 1.3em; color: rgb(51, 51, 51); font-variant-ligatures: normal; font-variant-caps: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><font face="tahoma">U.S. industrial natural gas consumption averaged 22.9 Bcf/d in the first half of 2021, according to our<span>&nbsp;</span><a href="https://www.eia.gov/naturalgas/monthly/" style="margin-top: 0px; margin-right: inherit; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: inherit; padding-bottom: 0px; padding-left: 0px; border: 0px none; font-weight: inherit; font-style: inherit; font-size: 12px; vertical-align: baseline; color: rgb(24, 155, 215); text-decoration: none; background: inherit;"><em style="margin: 0px; padding: 0px; border: 0px none; font-weight: inherit; font-style: italic; font-size: 12px; vertical-align: baseline;">Natural Gas Monthly</em></a>. Natural gas consumption fell in the U.S. industrial sector during 2020 when a<span>&nbsp;</span><a href="https://fred.stlouisfed.org/series/GDPC1" style="margin: 0px 1px 0px 0px; padding: 0px 10px 0px 0px; border: 0px none; font-weight: inherit; font-style: inherit; font-size: 12px; vertical-align: baseline; color: rgb(24, 155, 215); text-decoration: none; background: transparent url(&quot;/global/images/icons/external_link.png&quot;) no-repeat scroll right center;">decline in U.S. economic activity</a><span>&nbsp;</span>led to a<span>&nbsp;</span><a href="https://www.eia.gov/todayinenergy/detail.php?id=45196" style="margin-top: 0px; margin-right: inherit; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: inherit; padding-bottom: 0px; padding-left: 0px; border: 0px none; font-weight: inherit; font-style: inherit; font-size: 12px; vertical-align: baseline; color: rgb(24, 155, 215); text-decoration: none; background: inherit;">decline in output among industries that consume natural gas</a>, such as the metals, petroleum and coal products, paper, and chemicals industries.</font></p><p style="margin: 0px; padding: 8px 0px 10px; border: 0px none; font-weight: 400; font-style: normal; font-size: 12px; vertical-align: baseline; line-height: 1.3em; color: rgb(51, 51, 51); font-variant-ligatures: normal; font-variant-caps: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><font face="tahoma">In our latest<span>&nbsp;</span><a href="https://www.eia.gov/outlooks/steo/" style="margin-top: 0px; margin-right: inherit; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: inherit; padding-bottom: 0px; padding-left: 0px; border: 0px none; font-weight: inherit; font-style: inherit; font-size: 12px; vertical-align: baseline; color: rgb(24, 155, 215); text-decoration: none; background: inherit;"><em style="margin: 0px; padding: 0px; border: 0px none; font-weight: inherit; font-style: italic; font-size: 12px; vertical-align: baseline;">Short-Term Energy Outlook</em></a>, we expect natural gas consumption in the U.S. industrial sector to average 23.5 Bcf/d in the second half of this year and 23.2 Bcf/d for 2021. If realized, this amount of industrial natural gas consumption would exceed the 2019 average of 23.1 Bcf/d and mark the most U.S. industrial natural gas consumption since 1997.</font></p></div><div align="center"><font face="tahoma"><img src="https://download.qtmarketcenter.com/jay/eiaSep24-2.JPG"></font></div><div><font face="tahoma"><br></font></div><div><font face="tahoma"><br></font></div><div><font face="tahoma">LJ<br></font></div><font face="tahoma"><br></font>