North American Gas Boom Ahead as LNG, Power Demand Accelerate, Report Says
(P&GJ) — North America’s natural gas market is poised for decades of growth and transformation, according to Wood Mackenzie's newly released Strategic Planning Outlook (SPO) to 2050. The report outlines key structural shifts and long-term trends shaping demand, production and pricing.
Demand Growth Extends Beyond LNG Exports
While LNG exports will continue to drive demand, domestic consumption is also expected to surge. Growing power demand — fueled by data center expansion, industrial reshoring, electrification efforts, and the push for grid resilience — will elevate natural gas as a critical balancing fuel in the U.S. energy mix.
"The call on new gas pipeline infrastructure will be even more crucial in supporting surging gas demand in regional markets," the report states.
U.S. and Canadian LNG Expansion
U.S. LNG exports are projected to more than double by the early 2030s, underpinned by global energy security concerns and expanding commercial commitments. Meanwhile, Canada's LNG sector is expected to achieve a major milestone with its first export cargo anticipated by mid-2025, opening new trade routes to Asia.
Production Outlook
In the near term, associated gas from key shale basins like the Permian will drive production growth, despite oil price volatility. Over the longer term, non-associated gas production — particularly from the Gulf Coast, Northeast U.S., and Western Canada — will be critical to meet rising demand.
Supply longevity, strong inventory depth, and pipeline expansions will be vital to maintaining market stability, Wood Mackenzie said.
Higher Costs Ahead for Pricing
The shift toward higher-cost non-associated gas resources will gradually push Henry Hub prices higher, especially beyond 2040. Rising costs will require greater upstream investment to sustain supply growth, the report notes.
"For market participants, understanding these price signals will be critical for long-term planning and portfolio strategy," Wood Mackenzie added.
The Strategic Planning Outlook offers deep analysis across the gas and LNG value chain, helping energy professionals navigate evolving market conditions and align with structural shifts expected through 2050.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- DOE Considers Cutting Over $1.2 Billion in Carbon Capture Project Funding
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Newsom Seeks to Aid Struggling Refiners Following Valero’s California Exit
Comments