Pipeline Funds Get Boost from AI-Powered Gas Demand Boom
Hybrid companies and other operators are securing long-term power deals to fuel their AI training clusters, boosting natural gas demand. This trend has improved the case for midstream pipeline funds.
The Alerian MLP ETF (AMLP), Global X MLP & Energy Infrastructure ETF (MLPX), and Alerian Energy Infrastructure ETF (ENFR) are standout options in this space.
These three funds own various energy infrastructure assets, including gathering systems, long-haul pipelines, processing plants, and LNG export terminals. They move natural gas molecules from wellheads to power plants and ports.
The U.S. Energy Information Administration projects a 7% increase in domestic dry gas production by 2028, with LNG exports rising by over 80% by 2030. Adding AI power demand on top of this growth makes the case for pipelines structural rather than cyclical.