U.S. gas market expected to triple current size, supporting 29 billion cubic feet per day of production

The North American natural gas market is expected to triple its current market size, supporting 29 billion cubic feet per day of production from 2022 to 2033, according to a recent Wood Mackenzie report.

The growth is attributed to an increase in liquid natural gas (LNG) exports.

According to the report, gas producers will gradually increase investment over the next few years to support market expansion. This will cause gas prices to decrease until LNG export facilities become operational at the end of the decade, creating an outlet for international demand centers.

“The North America gas market expansion for the next decade will be equivalent to adding two new Permian basins,” Dulles Wang, Wood Mackenzie director of Americas gas and LNG research, said. “As Europe diversifies to more secure supply sources and international buyers across the globe seek reliable, low-cost supply, North America is poised to deliver.”

After 2030, growth is forecasted to slow. The Inflation Reduction Act of 2022 provides a variety of incentives that will support North America’s natural gas demand.

Wood Mackenzie is a global research and consultancy business. It employs teams dedicated to the chemical, gas and LNG, metals and mining oil, and power and renewables sectors.