The U.S. Energy Information Administration lowered its forecast for 2009 U.S. industrial natural gas demand Tuesday, citing continued economic weakness.

Industrial gas consumption is forecast to decline by 6% this year, outpacing the EIA's previous forecast of a 5.1% decrease. Major industrial gas consumers, including companies in the fertilizer, chemicals and aluminum industries, have curbed gas use as they cut spending.

Total natural gas consumption is expected to fall 1.3% in 2009 amid ongoing economic downturn and increase by 0.4% in 2010, the EIA said. The EIA had previously forecast a 0.6% increase in 2010. The 2009 consumption forecast was unchanged.

U.S. marketed natural gas production is expected to remain flat in 2009 and fall by 0.8% in 2010 as producers reduce 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 380 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 $4.67 a million cubic feet in 2009 and $5.87/Mcf in 2010, compared with $9.13/Mcf in 2008, the EIA said. Falling natural gas demand has placed downward pressure on prices.

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