U.S. Natural Gas Use for Power Generation Rose by 12 Percent This Winter: EIA

Estimated U.S. natural gas use for power generation averaged about 28.4 billion cubic per day from November 2019 to January 2020, about 12 percent higher compared to the same period in 2018-2019, according to a Jan. 30 report from the U.S. Energy Information Administration. Power burn reached 34 Bcf/d on Jan. 20, the second-highest natural gas use for power during a day in the winter.

The agency said that power burn was high this winter for several reasons, including lowest spot prices at Henry Hub since 2016; reduced pipeline congestion resulting from mild winter weather; addition of over 27 gigawatts of gas-fired capacity in 2018 and 2019; and retirement of over 12 gigawatts of coal-fired capacity in 2019.

Spot natural gas prices at the Henry Hub, the nation’s benchmark trading hub, dipped to their lowest levels since the aftermath of the warm winter in 2016, and are near their lowest prices for the past 20 years, according to the agency.

Average daily natural gas use for power generation during the winter has increased during the past decade from 17 Bcf/d to more than an estimated 28 Bcf/d during the winter of 2019–20.