The U.S. natural gas sector is witnessing another transformation and is ready for growth, despite limitations in the pipeline infrastructure, as a means to prepare for increasing demand for natural gas and address transportation constraints. Last year alone, new pipelines with a combined capacity of ~7 billion cubic feet per day (Bcf/d) came online, and more projects are on the horizon. After all, natural gas production in the U.S. is on the rise, with ADI forecasting an annual growth rate of about 1.7% through 2030, when the production is anticipated to reach ~115 Bcf/d. Gas production growth in U.S. shale plays, specifically from Haynesville and Permian, is driving medium-term demand for new pipeline takeaway capacity.
Several factors are contributing to the long-term surge in natural gas demand. A significant driver is the anticipated increase in liquefied natural gas (LNG) export capacity, with around 9.7 Bcf/d of new LNG export facilities currently under construction. Additionally, the proliferation of gas-fired power plants — especially to support energy-intensive data centers — will further escalate natural gas demand. To tackle the pipeline capacity constraints and support rising natural gas demand, many pipeline projects are underway across U.S. shale plays.
Exhibit 1 represents the gas production and takeaway capacity in the Permian Basin. Permian gas production averaged ~25 Bcf/d in 2024 and is expected to grow ~2% annually through 2028. With the recent startup of the Matterhorn Express pipeline, four new pipelines are set to be operational in the coming years.
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