After more than a decade of flat electricity demand, U.S. power consumption is rising again—and natural gas is growing right alongside it. Both domestically and globally, gas demand is accelerating as it fuels power generation and expanding LNG exports. The U.S. Energy Information Administration’s (EIA) 2026 outlook makes the trajectory clear: meeting rising power demand requires more dispatchable generation and more natural gas. 

As electricity consumption increases, natural gas remains the backbone of reliable, affordable power. EIA projects that gas-powered generation will increase from 35.2 billion cubic feet per day (Bcf/d) in 2025 to between 38.1 Bcf/d and 50.4 Bcf/d by 2050 in most cases.  

Even as wind and solar continue to grow, dispatchable generation continues to expand. Natural gas remains the most flexible and scalable option, making it critical for meeting peak demand and balancing the grid when renewables fall short.  

A major driver of increased energy demand is the rapid rise of data centers. As EID has previously examined, many data centers are seeking around-the-clock, dispatchable power, pointing to natural gas to meet that demand.  

The U.S. Remains a Natural Gas Production Powerhouse  

Meeting growing demand at home and abroad will require significantly more natural gas supply, with U.S. producers poised to deliver. Across most EIA scenarios, U.S. dry gas production rises from 107 Bcf/d in 2025 to between 133 Bcf/d and 151 Bcf/d by 2050.  

Much of this growth is led by the east region, home to the Appalachian Basin, where EIA expects production to nearly double, from 37 Bcf/d in 2025 to between 66 Bcf/d and 73 Bcf/d by 2050 in most cases.  

But supply growth doesn’t help reliability if it can’t reach demand. EIA is explicit that increased output, especially from the Appalachian Basin, will require massive infrastructure build-out. More pipelines and other critical energy infrastructure will be needed to move natural gas from the East Coast to the U.S. Gulf Coast to serve growing markets, including LNG exports.  

LNG Exports Drive Demand  

While domestic gas demand is rising, international demand is expanding even faster. EIA projects that U.S. LNG exports are the fastest-growing source of natural gas demand across all scenarios. Export volumes increase from 14.9 Bcf/d in 2025 to more than 30 Bcf/d by 2050 in most cases. 

This growth is already underway. EIA expects the U.S. LNG export capacity to increase to 27.7 Bcf/d by 2030, as projects under development come online, and additional capacity is expected to be economically viable through the 2030s and 2040s, supporting export volumes of 29.6 Bcf/d to 37.9 Bcf/d by 2050. 

American LNG has become a cornerstone of global energy security. Strong supply, competitive pricing, and flexible contracts position the United States to remain the world’s leading exporter for decades. 

Bottom Line: EIA’s 2026 annual energy outlook underscores that the era of flat electricity demand is over, and the infrastructure requirements of a data-driven economy are growing fast. Across most EIA cases, higher power demand and expanding LNG exports translate into higher natural gas consumption, higher production, and a clear need for new pipeline capacity, especially to move Appalachian supply to Gulf Coast markets.