U.S. natural gas production and demand will both rise in 2022 as the economy continues to grow, the U.S. Energy Information Administration (EIA) said in its Short Term Energy Outlook (STEO).

EIA projected that dry gas production will rise to 96.09 billion cubic feet per day (bcfd) in 2022 and 97.97 bcfd in 2023 from a record 93.59 bcfd in 2021.

The agency also projected that gas consumption would rise to 84.27 bcfd in 2022 from 82.92 bcfd in 2021 before sliding to 83.85 bcfd in 2023. That compares with a record 85.29 bcfd in 2019.

EIA’s projections in February for 2022 were bigger than its January forecasts of 96.04 bcfd for supply and 82.77 bcfd for demand.

The agency’s forecast U.S. liquefied natural gas exports would reach 11.35 bcfd in 2022 and 12.13 bcfd in 2023, up from a record 9.77 bcfd in 2021. That is a little lower to its January forecast of 11.54 bcfd in 2022.

EIA projected U.S. coal production would rise to 606 million short tons in 2022 and 624 million short tons in 2023 from 578 million short tons in 2021 as power plants burn more coal due to an expected rise in gas prices.

In 2020, coal output fell to 535 million short tons, its lowest since 1965.

EIA projected carbon emissions from burning fossil fuels would rise to 4.986 billion tonnes in 2022 from 4.872 billion tonnes in 2021 as power generators burn more coal before sliding to 4.976 billion tonnes in 2023.

That compares with a coronavirus-demand depressed 4.576 billion tonnes in 2020, which was the lowest since 1983.
Source: Reuters (Reporting by Scott DiSavino; Editing by Mark Porter, Alexandra Hudson)