A new report from the Interstate Natural Gas Association of America (INGAA) Foundation underscores a reality that policymakers often overlook: natural gas isn’t going anywhere. In fact, demand is growing fast.
Getting natural gas to homes, businesses and power generators will require significant expansion of infrastructure, including pipelines, transmission lines, and other crucial midstream structures. Without it, the United States risks bottlenecks that could undermine affordability, reliability, and energy security at a time when demand is surging, especially by data centers and the growth of liquified natural gas (LNG).
As INGAA Foundation Executive Director Herbe Shaw explains:
“Meeting the energy needs of North America will require sustained investment and development, which must begin now to ensure a safe, reliable, and affordable energy system.”
Natural Gas Demand to Rise Through 2052
INGAA’s projections make clear that natural gas will remain a backbone of the U.S. energy system for decades. The report showed that dry gas production in the United States is expected to rise from 36 trillion cubic feet per year (Tcf/yr) in 2022 to 49 trillion cubic feet per year (Tcf/yr) in 2052, a substantial increase driven by both domestic and global demand.
The Appalachian Basin will remain the largest contributor of U.S. natural gas, but other regional centers are expected to pick up momentum as well. For instance, production from the Haynesville Shale is projected to expand due to its proximity to LNG export infrastructure. As anticipated by INGAA, LNG exports will be the single largest source of incremental gas demand in the coming years.
LNG exports are set to more than triple by 2052, made possible by supply abundance, competitive pricing, and prioritization of low-emission fuels, according to the report. The United States has emerged as an LNG export powerhouse, with U.S. supply increasing to 60 percent of the European Union’s total LNG imports since the Russian invasion of Ukraine. U.S. LNG exports are fundamental to global energy security, and expanded infrastructure is needed to supply international demand.
Additional Infrastructure Is the Missing Link
Throughout the report, INGAA makes it equally clear that supply alone isn’t enough. Without the infrastructure to move it, abundant natural gas resources can’t reach the markets they need. To meet projected demand through 2052, INGAA estimates North America will require:
- More than $1 trillion in new midstream capital investment;
- 12-24 million cumulative jobs over 25 years;
- A 39 percent increase from 2022 in natural gas transmission capacity to 70 billion cubic feet per day (Bcf/d); and
- At least 37,000 miles of additional natural gas transmission pipelines and approximately 103,000 miles of new natural gas gathering pipelines.
Source: INGAA Foundation
The majority of this buildout – roughly 33,800 miles of transmission pipelines – will occur in the United States, with Texas expected to account for the largest regional pipeline expansion due to its heavyweight role in production. The Mid-Atlantic and Western regions of the United States will also experience marketed growth in pipeline capacity driven by domestic trade to meet data center demand in the Atlantic region and LNG exports in the West.
Investment in natural gas development means enabling economic growth, supporting jobs, and ensuring the grid has the reliable energy it needs to function.
Natural Gas Remains Essential for Grid Reliability
Even as renewables expand, natural gas continues to play an indispensable role in keeping the lights on. For instance, As INGAA notes, rising gas demand is not happening despite the energy transition, but alongside it:
“The increased demand for natural gas, even as its share as a source of generating fuel drops, reflects both the growth of the total volume of electricity and ongoing competitiveness of natural gas power plants to meet the need for reliability, resilience, renewable firming, and load-following in regions with high dependence on renewables.”
Source: INGAA Foundation
That reliability is especially critical as electricity demand surges from AI-driven data centers, which require constant, around the clock power.
As EID has previously examined, natural gas is the preferred choice for data centers because it provides reliable, dispatchable power 24/7. Without it, grid stability and the economic activity it supports would be at risk.
Permitting Delays are the Biggest Barrier
Despite the clear need for additional infrastructure, building new infrastructure in the United States has become increasingly difficult. INGAA highlights a familiar challenge EID has catalogued at length: a permitting process that is lengthy, unpredictable, and duplicative means years-long delays, rising costs, and in some cases, canceled projects. And despite bipartisan support and momentum, meaningful permitting reform has yet to cross the finish line in Congress.
For example, interstate gas pipeline operations must obtain permits from the Federal Energy Regulatory Commission (FERC), U.S. Army Corps of Engineers, and state environmental agencies to build crucial infrastructure. Each of these permits requires a myriad of steps to obtain, including public outreach, environmental analyses, and inter-agency coordination. And, unnecessary hurdles or hijacked loopholes means wasted time and taxpayer resources – resources which would be better dedicated to investing in American energy needs.
At a time when demand is accelerating, these barriers are more than bureaucratic hurdles. They are a direct threat to energy reliability and affordability.
Bottom Line: The INGAA Foundation report delivers a clear message: natural gas demand is growing, not shrinking, and infrastructure must keep pace. Without timely investment in pipelines and midstream systems, the United States risks stranding its own energy resources, constraining supply, and driving up costs for consumers.
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