The U.S. will increase natural gas production in 2026, driven by global demand for LNG and data center consumption

Riana Gegiu

28 October 2026, 11:03

International

Foto: Shutterstock.com

Always see our news on Google

U.S. natural gas production is expected to reach a new record in 2026, driven by rising liquefied natural gas exports and growing electricity consumption by data centers. According to the U.S. Energy Information Administration (EIA), production will rise from 107.6 billion cubic feet per day in 2025 to 112.2 billion in 2026 and 116.1 billion in 2027.

The increase will be driven mainly by the Permian Basin in western Texas and eastern New Mexico, and the Haynesville Basin in Louisiana and Texas. A significant portion of the growth will come from gas extracted alongside oil.

Total U.S. gas demand is expected to increase from 116.5 billion cubic feet per day in 2025 to 120 billion in 2026. LNG exports are forecast to rise by 17%, while the expansion of data centers is increasing electricity demand.

Major producers such as Expand Energy, EQT and Range Resources plan to increase production while maintaining or reducing investment. EQT announced the acquisition of Range Resources in a $13 billion transaction that is expected to create the largest U.S. gas producer in 2027.

Context: tensions in the Middle East have reshaped LNG flows and pushed Europe toward energy alternatives, while in the US electricity demand is rising due to data centers

Before the new forecasts regarding US production, the conflict between Iran and the US and the blockage of the Strait of Hormuz had affected global LNG deliveries, and companies around the world began to secure their supplies. One example is the agreement between QatarEnergy and Cheniere Energy for the long-term purchase of liquefied natural gas from the US, intended to offset reduced exports following attacks on energy infrastructure in Qatar and transportation difficulties through the strait.

At the same time, higher gas prices had effects in the EU: after exceeding the threshold of 80 euros/MWh, utilities increased coal-based generation, with forecasts indicating an approximately 25% increase in electricity generated from this source in the coming months.

In the US, energy demand was already being driven higher by the expansion of data centers dedicated to artificial intelligence and cloud services, with Moody’s estimating that the US could develop more than 30 GW of new energy capacity for this sector.