Connexion

Natural gas demand for power generation drops in the United States in May 2025

In May 2025, natural gas demand for electricity generation in the United States declined, influenced by cooler weather conditions and a significant increase in solar generation.

Partagez:

Natural gas demand for electricity generation in the United States experienced a notable decline in May 2025. According to data from the Energy Information Administration (EIA), average gas consumption for electricity generation was 31.5 billion cubic feet per day (Bcf/d) from May 1 to May 30, representing a decrease of approximately 2.2 Bcf/d compared to the same period in 2024.

Weather factors and rising solar generation

Lower-than-normal temperatures reduced air conditioning demand, resulting in a decrease of approximately 1% in overall electricity consumption compared to the previous year. Simultaneously, solar power generation increased by nearly 30% year-on-year, adding around 185 GWh/day to the grid.

Impact on coal-based electricity generation

Higher natural gas prices, averaging $3.11/MMBtu in May 2025 compared to $2.19/MMBtu in 2024, made coal more competitive for power generation. Consequently, coal-based electricity generation increased by 90 GWh/day, partially offsetting the decline in natural gas generation.

Forecasts and Outlook

The Energy Information Administration forecasts a 3% reduction in electricity generation from natural gas in 2025, primarily due to rising gas prices. The share of solar energy in electricity production is expected to rise from 5% in 2024 to 7% in 2025, reaching 8% in 2026.

  • Populaires ​
TerraPower raises $650 million with NVIDIA for modular reactors
France sets renewable energy target of 200 TWh by 2030
Indonesia and Russia strengthen strategic partnership on civil nuclear energy
EDF and the French State Agree on €70 Billion Plan for EPR2
Spain Blackout: Analysis of Causes and European Financing Plan Approved
Europe accelerates gas storage filling despite declining reserves
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
Seoul freezes electricity rates amid LNG supply risk concerns
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia ready to deliver liquefied natural gas to Mexico
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel resumes gas exports to Egypt and Jordan
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal Identifies Major Methane Reserve Estimated at 112 Billion m³
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas and JOGMEC Sign Strategic Agreement around LNG Canada Project
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Serbia negotiates gas deal with Gazprom at competitive European price
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy secure strategic exploration licence in Algeria
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.
TotalEnergies plans to restart its Mozambique gas project by summer 2025
After four years of interruption due to regional insecurity, TotalEnergies announces the upcoming resumption of its liquefied natural gas project in Mozambique, representing a $20bn investment.
TotalEnergies strengthens Malaysian foothold with new offshore blocks
The French group has acquired from PETRONAS stakes in several licences covering more than 100,000 km² off Malaysia and Indonesia, consolidating its Asian presence and its exposure to the liquefied natural gas market.
Egypt secures 290 LNG shipments to meet summer demand
In response to rising summer electricity consumption, Egypt signs import agreements covering 290 shipments of liquefied natural gas, involving major international firms, with financial terms adjusted to the country’s economic constraints.
Egypt: fertilizer companies halted after suspension of Israeli gas
Egyptian fertilizer producers suspended their activities due to reduced imports of Israeli gas, following recent production halts at Israel's Leviathan and Karish gas fields after Israeli strikes in Iran.
Emissions expected to surge in Texas with 130 gas plant projects
A report identifies 130 gas power plant projects in Texas that could raise emissions to 115 million tonnes per year, despite analysts forecasting limited short-term realisation.
JERA plans 30% US LNG share in its portfolio by 2035
Japanese giant JERA will significantly increase its reliance on US liquefied natural gas through major new contracts, reaching 30% of its supplies within roughly ten years.
U.S. LNG Exports Drive Natural Gas Prices Higher
Sustained growth in U.S. liquefied natural gas exports is leading to significant price increases projected for 2025 and 2026, as supply struggles to keep pace with steadily rising demand, according to recent forecasts.
Shell plans additional 12 million tonnes of LNG capacity by 2030
Shell is expanding its global Liquefied Natural Gas (LNG) capacities, primarily targeting markets in Asia and North America, to meet rising demand anticipated by the end of the decade.
Intense Heat in Asia Boosts U.S. LNG Exports
Above-average summer temperatures in Asia are significantly boosting demand for American liquefied natural gas, offsetting a potential slowdown in Europe and opening new commercial opportunities for U.S. exporters.
Duke Energy invests in 1,400 MW gas power plant in South Carolina
Duke Energy plans a strategic investment in a natural gas power plant in Anderson, marking its first request for new electricity generation in South Carolina in over ten years.
Adnoc Gas awards $5bn in contracts to expand gas infrastructure
Adnoc Gas commits $5bn to the first phase of its Rich Gas Development project to boost profitability and processing capacity at four strategic sites in the United Arab Emirates.
Brussels proposes to ban all transactions related to Nord Stream gas pipelines
The European Commission aims to prevent any return of Russian gas via Nord Stream and Nord Stream 2 with a total transaction ban, part of its 18th sanctions package against Moscow.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS