BAKU, Azerbaijan, July 23. Natural gas consumption in North America rose by nearly 2.5% year-on-year in the first half of 2025, driven largely by a colder-than-usual winter and spring that boosted heating needs, according to the International Energy Agency (IEA), Trend reports.
The agency’s latest market outlook shows that the increase in demand – totaling 13 billion cubic meters (bcm) – was concentrated in the first quarter, as low temperatures pushed up gas use in residential and commercial buildings across the United States and Canada. Heating degree days rose 10% year-on-year through May, translating into a 10% jump in gas consumption in the buildings sector.
In the United States alone, total gas demand climbed by 12 bcm, or around 2.5%, in H1 2025. However, the rise in consumption was uneven across sectors. While heating needs surged, demand for gas in power generation fell by about 4% – over 6 bcm – as higher gas prices and robust renewable output led to a shift back to coal-fired generation. Coal use for electricity increased nearly 15% year-on-year, and the share of gas in the U.S. power mix dipped from 40% to 38%.
Henry Hub prices averaged 70% higher than the same period in 2024, reflecting strong residential and commercial demand and below-average storage levels at the end of the heating season. In contrast, gas demand in industry and the energy sector grew modestly, helped in part by expanding LNG export activity.
Canada also saw a notable increase in gas use, with demand rising over 5% (more than 3 bcm) in H1 2025. The growth was again led by heating needs, with residential and commercial consumption jumping more than 10%. Industrial and power sector demand also grew by 3%.
Meanwhile, Mexico bucked the trend, posting a 4% decline in gas use – or nearly 2 bcm – due primarily to reduced gas-fired power generation.
Looking ahead, total gas demand in North America is expected to rise just over 1% for the full year 2025, with residential and commercial use likely to stay strong assuming average weather. However, the gas-to-power segment is forecast to see a slight decline amid growing renewable capacity.
In 2026, North American gas demand is projected to increase by less than 1%, with modest gains in power generation, industry, and the energy sector continuing to support consumption, the IEA added.
