The U.S. Energy Information Administration trimmed its forecast for 2009 U.S. industrial natural gas demand Tuesday, citing the economic downturn.

Industrial gas consumption is forecast to decline by 5.1% in 2009, surpassing the EIA's previous forecast of a 3% decrease. Several major industrial gas consumers, including Dow Chemical Co. (DOW), DuPont Co. (DD) and Alcoa Inc. (AA), have announced layoffs and reductions in capital expenditures.

Total natural gas consumption is expected to fall 1.3% in 2009 amid continued economic weakness and increase by 0.6% in 2010, the EIA said.

U.S. marketed natural gas production is expected to increase slightly in 2009 and fall by 1.1% in 2010 as producers cut spending and lower rig counts. Producers such as Chesapeake Energy Corp. (CHK), Petrohawk Energy Corp. (HK) and Sandridge Energy Inc. (SD) have scaled back spending amid falling commodity prices.

Liquefied natural gas imports to the U.S. were expected to rise to 369 billion cubic feet in 2009, a slight increase over the volume received in 2008, the EIA predicted.

Natural gas prices at the benchmark Henry Hub should average $5.01 a million cubic feet in 2009 and $5.93/Mcf in 2010, compared with $9.13/Mcf in 2008, the EIA said. Prices have been pressured lower by an ongoing drop in natural gas demand.

- By Christine Buurma, Dow Jones Newswires; 201-938-2061; christine.buurma@dowjones.com