US Natural Gas Demand Growth Outpaces Pipeline Buildout

The rapid growth of US natural gas demand is outpacing the buildout pace of new pipelines, according to industry estimates. By 2050, there will be a need for approximately 25,000 miles of new natural gas pipelines, even in a low-carbon scenario. However, regulatory hurdles, litigation, and supply chain delays are threatening to constrain critical markets, leading to price volatility.

The drivers behind this growth include artificial intelligence (AI) data centers, power generation, reshoring manufacturers, and global liquefied natural gas (LNG) exports. These sectors are pushing North America's energy needs to record heights, creating a demand for infrastructure that is not being met. The Interstate Natural Gas Association (INGAA) estimates that new pipeline capacity will be needed to stabilize key markets.

INGAA CEO Amy Andryszak discussed the challenges facing midstreamers in building the necessary infrastructure on an episode of NGI's Hub & Flow podcast. She highlighted the need for legislative changes and regulatory reform, as well as navigating steel tariffs and intense competition for natural gas turbines.