U.S. natural gas production is on track to set another record in 2027, fueled by both domestic and global demand. The Energy Information Administration (EIA) forecasts output to reach 116.13 billion cubic feet per day, up from 112.2 billion cubic feet per day in 2026. This growth is attributed to increased production in key regions like the Permian and Haynesville basins, as well as expanding liquefaction capacity for exports. The surge in output is expected to offset rising LNG exports, leading to a projected Henry Hub spot price of $3.16 per MMBtu in 2027, a 9% decline from 2026 levels.
The rise in production is also being driven by the growing demand for natural gas in data centers, which are increasingly relying on gas-fired power to support the expansion of AI technologies. Meanwhile, LNG exports have surged, reaching 17.4 billion cubic feet per day in the first half of the year, a 23% increase compared to the same period in 2025. This increase is due to expanded export capacity and a shift in global demand as Qatar’s gas supply is disrupted by the Iran war.
Industry consolidation is also playing a key role in the growth of U.S. natural gas production. EQT Corporation and Range Resources recently announced a merger that will create the largest natural gas company in the U.S., with a pro-forma enterprise value exceeding $50 billion. The deal is expected to enhance EQT’s position as a leading supplier for both power generation and data center growth. EQT has also raised its 2026 production guidance, citing improved performance from compression investments and better-than-expected results.
Other major players in the industry, such as Expand Energy, are also positioning themselves for a new era of demand-driven growth. The company highlighted a "historic wave of structural domestic demand growth" and noted that the market is shifting from supply-push to demand-pull dynamics. These developments suggest a strong outlook for the U.S. natural gas sector, with continued growth expected in the coming years.