Pluses associated with the use of natural gas by many sectors of the US economy are impacting the demand side of the supply-demand equation, Bentek Energy LLC researchers believe.
Signs of stronger demand over the next five years are emerging, Bentek says, with US gas usage conservatively increasing by 4 Bcf/d by 2016, Gas Business Briefing understands.
The market is facing slightly greater upside price risk because of demand growth, Bentek adds.
"The incentives to burn more natural gas are substantial, including lower and more stable gas prices, abundant available supply, new supply locations that are in closer proximity to markets, and the environmental advantages of natural gas over other fuels," Bentek writes in "Natural Gas Demand: Waking the Sleeping Giant."
Gas demand in the power industry is projected to increase by 15% by 2016, to 22.9 Bcf/d, according to Bentek, due to coal-to-gas plant switching, coal plant retirements, and gas-fired power plant additions.
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