Power demand will drive overall gas consumption in the United States this year, but the US has ample stocks to meet this rise.
Low prices have boosted demand for gas from the US power sector. This has also narrowed the price differential between gas and coal, which in turn is promoting coal-to-gas switching in the US power sector. Gas-to-power demand in the US was up by 18.5% on an annual basis in 2015, to 273.2 billion cubic metres. GGA expects a year-on-year rise of 4.5% in 2016. Meanwhile, total gas consumption in the country is expected to increase by 2.5% on an annual basis in 2016 – to 789.1 bcm.