The U.S. natural gas sector is experiencing rapid growth, driven by increasing energy demand, cost advantages, and strong policy support. As AI data center electricity needs grow and global Liquid Natural Gas (LNG) demand accelerates, natural gas is solidifying its role in the energy transition.
1. Structural Demand Growth and Cost Competitiveness
Natural gas powers the digital and industrial economy, fueling 45% of U.S. power generation and 29% of industrial energy use.1 Roughly 40% of current data center electricity needs are met by natural gas, and with U.S. electricity demand from data centers projected to grow 4x by 2030, its role as a reliable energy source will only expand.2
Past Performance is no guarantee of future results and estimates are not intended to be a forecast or guarantee of
results. “E”=estimate. EQT Corporation as of 07/24.
Natural gas remains one of the most affordable energy sources in the U.S., with a Levelized Cost of Electricity (LCOE) between $39 and $101 per MWh—significantly lower than coal ($68 to $166) and nuclear ($141 to $221).1 Its cost-effectiveness makes it a scalable solution for fueling growing energy needs.
2. Massive Infrastructure Investment Backed by Policy Tailwinds
Government policies and private investments are driving sector growth. The recent Executive Order 14156 streamlines permitting and accelerates LNG projects, supporting U.S. natural gas infrastructure. More than $21 billion in new projects from leading pipeline and LNG operators have been announced, supporting infrastructure development through 2030.3
3. Expanding U.S. LNG Exports to Meet Global Energy Demand
The U.S. led global LNG exports in 2024, with exports reaching 7.71 Tcf—nearly 2.5 times its imports.4 Strong demand from Europe (53%) and Asia (33%) continues to drive growth, with net exports hitting record highs in early 2025.4 As nations seek stable energy sources, U.S. LNG is emerging as a preferred option, particularly as Europe shifts away from Russian gas and Asia’s industrial and residential needs surge. Exports are projected to grow by 19% in 2025 and 15% in 2026, and with LNG terminal capacity set to expand from 17.1 Bcf/d to 25.2 Bcf/d by 2028, further growth is expected as more projects reach Final Investment Decision (FID).1,4
| Attractive Valuation and Forward EPS: The midstream natural gas sector has an impressive forward EPS (earnings per share) growth projection of 18.3% even exceeding expectations for the Tech sector.3,5 |
Conclusion
With surging AI and data center-driven electricity demand, record LNG exports, and policy-backed infrastructure growth, U.S. natural gas is becoming a cornerstone of the global energy transition.
USNG offers pure play actively managed exposure to this growing sector. Learn more:
USNG: Amplify Samsung U.S. Natural Gas Infrastructure ETF
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