TOPIC #6
THE ENERGY INDUSTRY
IN CHARTS
Much discussion on load growth and, in particular, large data center loads has focused on energy production resource availability. Also emerging in increasing importance is the availability and deliverability of natural gas for power generation.
Natural gas producer EQT estimates that data center growth and additional coal plant retirements could drive U.S. gas demand up by an incremental 10 Bcf/day by 2030, possibly up by 18 Bcf/day if data center build-out is more aggressive than expected.
The natural gas industry is also focusing on storage in response to higher summer and winter demand.
Gas Infrastructure and Market Expansion Trends
Gas demand has steadily grown, as has pipeline and LNG storage capacity. Production growth has been concentrated in the eastern United States. Underground gas storage, however, has had only nominal growth.
FIGURE 1
Natural Gas Infrastructure and Market Expansion Rates (2013-2023 Compound Annual Growth Rates*)
Note: All data shown for summer seasons (April through October)
Sources: American Gas Association (citing EIA; Pipeline and Hazardous Materials Safety Administration)
Summer Power Burn
As shown in Figure 2, summer power burns are increasingly driven by structural growth (i.e., increases in power generation gas demand). Price-driven fuel switching (i.e., economic dispatch) has largely offset fluctuations in structural demand, highlighting natural gas’s continued dispatch flexibility.
FIGURE 2
Summer Power Burn: Structural Growth vs. Economic Switching
Note: All data shown for summer seasons (April through October)
Sources: Natural Gas Supply Association (citing Energy Ventures Analysis)
U.S. Gas Demand Outlook
FIGURE 3
U.S. Natural Gas Demand Outlook by End-Use Type (Bcf/Day) (2000–2030F)
Note: Shaded region represents forecast.
Sources: American Gas Association (citing Rystad Energy)
The trend of increased natural gas demand is expected to continue through at least 2030. Rystad Energy forecasts that total domestic natural gas consumption will increase by 4.5 Bcf per day, or 5 percent, from 2024 to 2030.
Natural gas is widely perceived to be a critical energy resource to meet data center energy load growth going forward. S&P Global Ratings estimates that by 2030, U.S. data centers will increase gas demand by between 3 and 6 Bcf per day. Increased demand could lead to supportive financial performance…of midstream companies focused on natural gas transportation and storage.
—American Gas Association, Assessing the Value of Natural Gas Storage (Apr. 2025)