EQT Corporation EQT, the second-largest producer of natural gas in the United States, believes that the growing demand for natural gas in the United States is not met with sufficient pipeline capacity. EQT CEO, Toby Rice, recently mentioned that the production of natural gas has increased, however, the pipeline capacity is not enough to transport the commodity per the needs. The demand for liquefied natural gas (LNG) has shown an upward trend over the years, reaching record highs in recent years.

LNG Demand Surges as Data Centers Drive Power Consumption

Huge power consumption by data centers is currently driving the growth of LNG demand in the United States and many companies believe that the infrastructure in place is not enough to meet the rise in production. Several projects associated with the expansion of LNG infrastructure were canceled or delayed over the past few years, which may have contributed to the lack of pipeline capacity, per Rice’s statement. This includes EQT’s Mountain Valley pipeline, which runs from West Virginia to Virginia. The project faced several delays in the past eight years, which ran up the total cost associated with the project to nearly $8 billion. The initial estimated cost of the project was approximately $3.5 billion.

The constraints in the transportation of gas, in turn, translate into higher energy bills for consumers in the nation. Rice mentioned that over the past four years, U.S. consumers have witnessed approximately a 35% increase in electricity costs.

EIA Projects Record-High Natural Gas Consumption Through 2026

The U.S. Energy Information Administration has projected a robust increase in natural gas consumption, including natural gas exports. In 2024, consumption hit a record high of 102.3 billion cubic feet per day (bcf/d). This figure is expected to rise to 105.5 bcf/d in 2025, and even further to 107.6 bcf/d in 2026. A majority portion of this demand growth is expected to come from U.S. LNG exports. The boom in artificial intelligence (AI) and the adoption of cloud computing and digital services worldwide are also contributing to increased demand for power in data centers, driving up the demand for LNG. NextEra Energy Inc. NEE, a U.S.-based renewable energy firm, has projected power demand to rise 20% more in the next two decades compared to the previous two decades. The rise in power demand should also impact the increase in LNG demand.

The United States is the largest producer of gas in the world and in 2023, it also became the largest supplier of LNG globally. Following the victory of President Donald Trump, the energy industry received a boost as many regulatory barriers were lifted. President Trump removed a moratorium on new LNG export plant permits that was put in place by the prior administration.

Gas Producers Project Output Growth

Many gas-producing firms in the United States expect production levels to rise in the upcoming years including, Range Resources Corporation RRC. RRC projects an annual production of 2.2 billion cubic feet equivalent per day (Bcfe/d) in 2025. This figure suggests an increase compared to the average production of 2.18 Bcfe/d in 2024. Furthermore, its three-year outlook projects an annual production of 2.6 Bcfe/d by 2027.

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