EIA Sees U.S. Natural Gas Production, Demand Reaching New Records in 2026

Federal forecasters expect another year of growth for the U.S. natural gas market, with production, demand and LNG exports all moving toward new highs.

(Reuters) — U.S. natural gas supply and demand will both rise to record highs in 2026, the U.S. Energy Information Administration said in its Short-Term Energy Outlook on June 9.

EIA projected dry gas production will rise from a record 107.7 billion cubic feet per day in 2025 to 111.0 billion cubic feet per day in 2026 and 113.6 billion cubic feet per day in 2027.

The agency also projected domestic gas consumption will rise from a record 91.9 billion cubic feet per day in 2025 to 92.1 billion cubic feet per day in 2026 and 95.0 billion cubic feet per day in 2027.

The June projections for 2026 were higher than the EIA's forecast in May of 110.6 billion cubic feet per day for production and 91.2 billion cubic feet per day for demand.

The agency forecast average U.S. liquefied natural gas exports would rise from a record 15.1 billion cubic feet per day in 2025 to 17.2 billion cubic feet per day in 2026 and 18.6 billion cubic feet per day in 2027.

With power generators expected to burn less coal in coming years, the EIA projected U.S. coal production would drop from a two-year high of 528.4 million short tons in 2025 to 518.4 million tons in 2026 and 496.8 million tons in 2027, the lowest since 1963.

EIA projected carbon dioxide emissions from fossil fuels would decline from a three-year high of 4.904 billion metric tons in 2025 to 4.818 billion metric tons in 2026 as oil and coal use decreases, before edging up to 4.837 billion metric tons in 2027 as gas use increases.