EIA: US Gas Consumption Seen Climbing 3% In 2010

May 12, 2010

HOUSTON -(Dow Jones)- The U.S. Energy Information Administration projected that U.S. natural gas consumption would climb by 3% in 2010, propelled by higher usage among utilities and industrial consumers.

Gas consumption is expected to reach 64.4 billion cubic feet a day in 2010, slightly higher than the previous month's forecast of 63.8 billion cubic feet a day, the EIA said in its monthly Short-Term Energy Outlook.

Natural gas prices at the benchmark Henry Hub should average $4.48 a million British thermal units in 2010, up 4 cents from the previous month.

U.S. gas production is expected to increase by 1.3% in 2010, slightly lower than the agency's previous forecast, to reflect recent changes in how the EIA calculates production data. The EIA expects a contraction in drilling activity to contribute to a slight production decline in 2011.

The EIA expects natural gas in U.S. storage to climb to 3.8 trillion cubic feet by the end of the injection season, when natural gas stockpiles are replenished to meet winter heating demand. Inventories are not expected to reach last year's record of 3.837 trillion cubic feet, according to the report.

Liquefied natural gas imports to the U.S. are expected to climb by 0.4 billion cubic feet a day in 2010 as new LNG facilities come online. However, higher prices for LNG in Europe and Asia are expected to attract cargoes away from the U.S., the EIA said. -By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com

Source: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201005111254dowjonesdjonline000459&title=eiaus-gas-consumption-seen-climbing-3in-2010

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