BAKU, Azerbaijan, October 28. Natural gas consumption in North America rose modestly in 2025, supported by colder winter conditions but tempered by high prices and lower use in the power sector, according to the International Energy Agency’s (IEA) latest outlook, Trend reports.
The agency estimates that gas demand increased by around 0.5%, or less than 5 billion cubic meters, year-on-year in the first three quarters of 2025. The growth was concentrated in the first quarter, when colder-than-average temperatures boosted space heating needs across Canada and the U.S. However, consumption declined in the second and third quarters as rising prices made gas-fired power generation less competitive.
In the U.S., gas demand increased by less than 0.5% (around 3 bcm) in Q1–Q3 2025, driven mainly by a 10% rise in heating degree days early in the year. This lifted residential and commercial gas use by roughly 10% compared with 2024. In contrast, gas-to-power demand fell by an estimated 4% (14 bcm) amid stronger renewable output and coal’s renewed cost advantage. The share of gas in U.S. power generation dropped from 42% to below 40% as Henry Hub prices averaged 65% above last year’s levels.
Industrial gas use in the U.S. and energy-related consumption rose slightly, supported by higher demand from LNG liquefaction facilities. In Canada, gas consumption increased by 4.5% (3.3 bcm) in the first seven months of the year, driven by a sharp rise in residential and commercial demand and a 2.5% increase in industrial and power sector use. Meanwhile, Mexico saw a 2.5% decline (2 bcm) in gas demand due to reduced gas-fired generation.
For the full year, North American gas demand is expected to grow by around 0.5%, with increased residential and commercial consumption largely offset by weaker gas use in power generation. The IEA projects a similar 0.5% increase in 2026, supported by stronger demand from the industrial, energy, and power sectors.
