EIA: Texas, Louisiana LNG Exporters Had Nearly Half US Natural Gas Demand Growth in Last Decade

(Reuters) — Texas and Louisiana, two states on the U.S. Gulf Coast that produce and export LNG, accounted for nearly half the domestic demand growth for natural gas in the last decade, the Energy Information Administration (EIA) said on Tuesday.

Overall demand for natural gas grew by 43%, or 34.5 billion cubic feet per day (Bcf/d), from 2012 to 2022, with Texas and Louisiana responsible for 16 Bcf/d of that growth.

Demand for feedgas for LNG exports in the two states has more than doubled since the inception of the first U.S. LNG export terminal in Sabine Pass, Louisiana in 2016.

So far this year, North American export facilities have added LNG sales contracts of around 22 million tons per annum (MTPA), with four facilities accruing individual totals of more than 4 MTPA each, TPH analyst Colton Bean said in a note.

"Seven individual export facilities have added commercial support over the first half of 2023 with incremental contracts pushing greenfield and expansion projects closer to FID (final investment decision)," Bean added.

With summers getting hotter and power plants moving away from coal, natural gas is fueling more electricity generation, the second-biggest factor driving demand growth, the EIA said.

Last year, higher air-conditioning demand caused by the third warmest summer on record sent natural gas consumption in the electric power sector to all-time highs.

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