US natural gas demand is expected to get a boost as upcoming industrial projects suggests the pace of industrial demand growth is likely to accelerate further in the second half of this decade.Barclays said in an update on US Natural Gas that gas demand should receive a boost from the construction of new industrial manufacturing plants spanning acorss a number of industries.

"For the 2015-17, our updated project list suggests that natural gas use may rise by almost 3.2 Bcf/d once all projects targeting start-up in that timeframe are fully ramped up. Specifically, natural gas use from projects targeting start up in 2015 adds up to about 0.7 Bcf/d. If projects come online as planned, industrial demand could rise by a further 1.1 Bcf/d in 2016, and 1.4 Bcf/d in 2017. Although for many of these projects significant uncertainty remains on their start up timeframe, and some could still be delayed or cancelled, this update suggests that industrial demand growth could exceed our earlier estimates."

Industrial consumption grew by 713 MMcf/d/y/y in 2013, compared with Barclays initial projection for 300 MMcf/d growth.

So far, this dynamic has been largely the result of restarting previously mothballed facilities and expanding capacity at existing operational ones.
Source: Barclays