US Natural Gas Prices Set for Sharp Surge by 2035
The era of cheap US natural gas may be coming to an end as demand surges from AI data centers, gas-fired power generation, and liquefied natural gas (LNG) exports. According to a forecast by Wood Mackenzie, Henry Hub prices are expected to approach $5 per million British thermal units (mmbtu) in real terms by 2035.
For most of the past decade, Henry Hub prices have remained between $2-4 per mmbtu, thanks to rapid shale development, near-zero-cost associated gas, and productivity gains. However, these conditions are no longer assured, with demand rising at a sustained pace while supply becomes harder and costlier to grow.
The sharpest demand pressure is expected from the US power sector, where load growth from data centers and AI investment will add 17 billion cubic feet per day of gas demand by the mid-2030s. This represents a near 50% increase from 2025 levels, equivalent to roughly half the demand of the existing US power sector.
US LNG capacity is also set to more than double, with the country forecast to account for over one-third of global LNG supply in the early 2030s. Investment decisions for new export capacity reached a record high in 2025, with more projects reaching final investment decision in 2026.