FERC: U.S. Natural Gas Demand Exceeded Supply in 2022

SEATTLE (Oil Monster): The Federal Energy Regulatory Commission (FERC), in its 2022 State of the Market Report, noted that the country’s natural gas demand exceeded supply during that year. The demand growth was mainly driven by European markets, which sought to replace halt in Russian supply.

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According to FERC, the U.S. liquefied natural gas (LNG) exports surged 8.6% over the prior year to average at 10.6 Bcf/d in 2022. The net overall natural gas exports, including liquefied natural gas and pipeline exports, totalled 10.6 Bcf/d, slightly higher when compared with 10.5 Bcf/d in 2021. The domestic natural gas prices recorded increase in 2022 at all major hubs, the Commission noted.

FERC researchers noted that natural gas demand growth outpaced gains in natural gas production, thus leading to higher prices. The boosted natural gas demand during the previous year was mainly driven by rising domestic natural gas consumption and LNG exports. The production extended growth trend witnessed during the past decade, although it failed to keep pace with demand, they said.

The pipeline infrastructure expansion at the Permian Basin and Haynesville Shale led to increased production in both the regions. On the contrary, the Marcellus and Utica shales in Appalachia witnessed dip in production year-on-year.