June 18, 2021

Industrial demand for natural gas is the most price sensitive sector. Chemical manufacturing (Fertilizer, Methanol), about 40% of market, tends to be the most natural gas intensive sector using the molecule as a feedstock in production.

Petroleum and Plastics (10% market share) utilize natural gas as both a feedstock and process fuel.

During the 2000s, price increases caused overall industrial demand to drop to 19.5 Bcf/d in 2009, down 5.1 Bcf/d from 2000.

As shale gas supply increased the availability of low-cost natural gas, industrial demand that had been lost began to return to North America. Pre-Covid industrial demand in 2019 was 27.3 Bcf/d.

Incorrys expects Industrial demand to grow 0.5%/year, reaching 28.2 Bcf/d by 2030. Evolving carbon policy could impact potential growth investments.

Map of Regional Breakdown