US LNG buildout sets the stage for a major demand shift in natural gas

Diversified Energy Company

The US remains the world’s largest consumer of natural gas, using around 90 billion cubic feet per day. That figure has grown steadily, underpinned by abundant shale production and the shift away from coal in electricity generation. But the next leg of demand growth is increasingly tied to LNG exports, which are moving from niche to central in the US gas story.

Since 2016, the US has added around 12.7 billion cubic feet per day of LNG export capacity. Another 13.3 billion is scheduled to come online by 2030. If this full pipeline is built and utilised, it could lift total US natural gas demand by roughly 20 billion cubic feet per day, a near 20% increase on today’s levels. That would place material pressure on the domestic gas balance, especially during peak seasons, and could drive new price dynamics in regional hubs.

On the domestic side, power demand is the next major growth lever. Large-scale data centres, new manufacturing facilities, and wider electrification trends are pushing utilities to add gas-fired generation capacity. Forecasts now show around 40 gigawatts of new gas capacity expected by 2030, roughly double what was previously anticipated. That could add another 4.2 billion cubic feet per day to gas demand.

Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

US natural gas prices strengthen as demand outlook improves

US natural gas prices are benefiting from stronger demand forecasts, growing LNG requirements and a gradual tightening in the supply-demand balance.

Diversified Energy Agrees $1.8bn Deal for Birch Permian Assets

Diversified Energy is acquiring Birch Permian for $1.8 billion, adding around 68,000 boepd of production and 46,000 net mineral acres while establishing a much larger operating position in the Permian Basin.

Diversified Energy expands its mature-well strategy across the Permian

Diversified Energy is scaling its mature-well strategy in the Permian with a $1.8 billion Birch Resources acquisition that significantly expands its production and EBITDA base.

Gervais Williams Premier Miton analyses Diversified Energy’s investment case and upside

Gervais Williams explains why Diversified Energy’s Birch acquisition could improve productivity and cash returns while maintaining an attractive income yield and exposure to a potential recovery in US gas prices.

Diversified Energy deepens Permian position with $1.8 billion Birch acquisition

Diversified Energy’s planned acquisition of Birch Resources would add scale, infrastructure and liquids exposure in the Permian Basin, with completion targeted for the fourth quarter of 2026.

Premier Miton UK Multi Cap Income Fund: Gervais Williams on the overlooked UK income stocks (video)

The Premier Miton UK Multi Cap Income Fund Co-Fund Manager explains why income growth, strong cash generation and undervalued smaller companies could become increasingly important, while highlighting opportunities in Victorian Plumbing, Personal Group, ACG Metals, PayPoint, Diversified Energy and CMC Markets.

Search