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EIA: US natgas production and demand will reach record highs by 2025 before declining in 2026

The U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook, released on Tuesday, predicted that the U.S. Natural Gas output and demand would both reach record highs by 2025. However, they will then decline in 2026.

EIA projects that dry gas production will increase from 103.2 billion cubic feet per day in 2024, to 105.9 in 2025, before slipping to 105.4 in 2026. This compares to a record of 103.6 bcfd for 2023.

The agency also predicted that domestic gas consumption will rise from 90.5 bcfd, a record in 2024, to 91.4bcfd by 2025 and then ease back to 91.1bcfd by 2026.

The EIA's June forecast of 105.9 billion cubic feet per day for supply in 2025 has not changed, but its July forecast is higher than the 91.3 billion cubic feet per day forecast.

The agency predicted that average U.S. LNG exports will reach 14.6 billion cubic feet per day (bcfd) in 2025, and 16.0 billion cubic feet per day in 2026. This is up from 11.9 bcfd at a record in 2024.

The EIA predicted that U.S. coal output would increase from 512.1 million short tonnes in 2024 - the lowest level since 1964 - to 519.9 millions tons in 2020, before dropping to 475.1million tons in 2030, the lowest level since 1962.

EIA predicted that carbon dioxide (CO2) emission from fossil fuels will rise from a low of 4,777 billion metric tonnes in 2024, to 4.836 in 2025, as oil, gas and coal use increases. Then, the emissions would ease to 4.775 in 2026, as oil, gas and coal use decreases. (Reporting and Editing by Franklin Paul, David Gregorio and Scott DiSavino)

(source: Reuters)