US Natural Gas Market to Grow at Over 5% CAGR by 2030 Backed by Power Generation and LNG Export Growth

Mordor Intelligence has published a new report on the US Natural Gas Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

The US natural gas market is estimated to grow at a compound annual growth rate (CAGR) of more than 5% during the forecast period, 2025 to 2030. This growth is underpinned by robust demand from the electric power sector, rising liquefied natural gas (LNG) exports, industrial consumption, and residential heating requirements. The country remains one of the largest producers and consumers of natural gas globally, with abundant reserves and a strong infrastructure backbone. The consistent performance of key shale basins and ongoing investments in pipeline and storage capacities are central to sustaining supply amid rapidly increasing domestic and international demand.

In recent years, natural gas has remained a cornerstone of the U.S. energy mix. The production and consumption levels have recovered and exceeded pre-pandemic benchmarks, affirming the market's stability and resilience. From utilities powering growing urban populations to industrial facilities and data centers driving new load growth, natural gas continues to be a key resource due to its reliability, scalability, and existing infrastructure.

Report Overview: https://www.mordorintelligence.com/industry-reports/united-states-natural-gas-market?utm_source=openpr

Key Trends

Surge in Power Sector Demand

The power generation sector remains the largest end user of natural gas in the United States. In 2022, the electric power sector consumed approximately 32.1 billion cubic feet per day (Bcf/d) of natural gas, a record high. This trend is expected to persist due to the increasing electricity needs of a growing economy and the rising influence of data centers that require a constant and reliable power supply. Although renewable energy sources like solar and wind are expanding, natural gas continues to provide crucial grid stability and backup generation.

Shale Gas Production Drives Supply

The United States continues to lead globally in natural gas production, mainly driven by prolific shale basins such as the Permian, Appalachia, and Haynesville. These basins have significantly contributed to the domestic supply, helping the country meet both internal demand and export commitments. Shale gas accounted for nearly 79% of total U.S. dry natural gas production in 2021, and production volumes have consistently increased year over year due to improved extraction efficiency and technological advancements in drilling.

LNG Exports Fuel Market Expansion

The U.S. is among the top three LNG exporters in the world, with exports playing a critical role in overall natural gas demand. Over the coming years, LNG export capacity is expected to double, supported by new terminals and infrastructure expansion along the Gulf Coast. As global energy markets seek alternatives to coal and oil, U.S. LNG offers a competitive and cleaner option. Demand from Asia and Europe, in particular, is driving this growth, positioning the United States as a stable and scalable LNG supplier.

Infrastructure Constraints Highlight Investment Needs

While production and demand continue to rise, the country faces bottlenecks in midstream infrastructure. Pipeline constraints in key areas can lead to supply distribution issues and regional price disparities. To address this, there is a growing need for new investments in transmission pipelines, compressor stations, and storage solutions. The expansion of salt cavern storage facilities and inter-basin pipelines is critical to ensuring a steady and flexible supply.

Emerging Digital Demand

The rapid growth of artificial intelligence, cloud computing, and data-driven industries has increased electricity demand in the U.S., particularly from large-scale data centers. These facilities often rely on gas-fired plants for backup and continuous power, contributing further to natural gas consumption. Forecasts suggest that dozens of new gas-fired generation units may be commissioned in the next five years to meet the demands of the digital economy.

Market Segmentation

The US natural gas market is segmented as follows:

By Type

Wet Natural Gas

Dry Natural Gas

By End-Use Application

Power Generation

Industrial

Residential

Commercial

Automotive

LNG Exports

By Region/Basin

Permian Basin

Appalachia Basin

Haynesville Basin

Other U.S. Shale Regions

Explore Our Full Library of Energy & Power Research Industry Reports: https://www.mordorintelligence.com/market-analysis/energy-power?utm_source=openpr

Key Players

The U.S. natural gas market features a diverse mix of companies, including integrated energy giants, midstream operators, and export terminal developers.

Upstream Leaders: Companies like ExxonMobil, Chevron, ConocoPhillips, EOG Resources, and Occidental Petroleum lead exploration and production activities across key shale plays.

Midstream Infrastructure Providers: Several companies specialize in transportation, storage, and processing. These players are crucial in addressing pipeline constraints and enabling access to domestic and international markets.

LNG Exporters: Firms operating export terminals, particularly along the Gulf Coast, are investing in expansion projects to double LNG capacity over the next few years. These investments are instrumental in shaping the future of the global LNG trade and U.S. market dynamics.

Explore more about US Natural Gas Market Competitive Landscape: https://www.mordorintelligence.com/industry-reports/united-states-natural-gas-market/companies?utm_source=openpr

Conclusion

The United States natural gas market is poised for sustained growth through 2030, with a projected CAGR exceeding 5%. This growth is anchored by strong domestic consumption and a sharp rise in LNG exports. Continued dominance in shale production, strategic infrastructure investments, and a responsive supply chain will be essential to meeting market demands. As global energy consumption patterns shift, U.S. natural gas is well-positioned to play a central role in ensuring energy reliability, affordability, and transition readiness.

Industry stakeholders will need to navigate infrastructure limitations, policy developments, and environmental considerations, but the market outlook remains positive. For producers, midstream operators, and exporters alike, the next five years offer a unique opportunity to capture value in a market where demand is high and capacity is catching up.

For more market analysis, visit the ordor Intelligence page: https://www.mordorintelligence.com/industry-reports/united-states-natural-gas-market?utm_source=openpr

Industry Related Reports

Europe Natural Gas Market: Europe Natural Gas Market is segmented by Sector (Upstream, Midstream, and Downstream), Location of Deployment (Onshore, Offshore), and Geography (United Kingdom, Norway, Netherlands, Germany, and the Rest of Europe).

Get More Insights: https://www.mordorintelligence.com/industry-reports/europe-natural-gas-market?utm_source=openpr

Asia-Pacific Natural Gas Market: The Asia-Pacific Natural Gas Market is Segmented by Geography (China, India, Japan, South Korea, and Rest of Asia-Pacific).

Get More Insights: https://www.mordorintelligence.com/industry-reports/asia-pacific-natural-gas-market?utm_source=openpr

Egypt Natural Gas Market: The Egypt Natural Gas Market is Segmented by End-user (Industrial, Commercial, Residential, and Transport).

Get More Insights: https://www.mordorintelligence.com/industry-reports/egypt-natural-gas-market?utm_source=openpr

Africa Natural Gas Market: Africa Natural Gas Market is Segmented by Geography (Nigeria, Algeria, Egypt, South Africa, and Rest of Africa).

Get More Insights: https://www.mordorintelligence.com/industry-reports/africa-natural-gas-market?utm_source=openpr

For any inquiries or to access the full report, please contact:
media@mordorintelligence.com
https://www.mordorintelligence.com/

Mordor Intelligence, 11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli, Hyderabad, Telangana - 500032, India.

About Mordor Intelligence:

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

This release was published on openPR.