US Natural Gas Demand for Power Generation to Reach Record in 2027, EIA Says

The US Energy Information Administration expects natural gas consumption in the electric power sector to reach a record in 2027 as electricity demand continues to grow, according to its monthly Short-Term Energy Outlook for July on Tuesday. The agency forecasts that natural gas use for power generation will increase by 2% in 2026 and by another 4% in 2027, to a record 38.1 billion cubic feet per day. Monthly demand is expected to reach an all-time high of 50.6 Bcf/d in July 2027. Higher electricity demand, additional natural gas-fired generating capacity and relatively low natural gas prices will drive the increase, the EIA said. US gas-fired capacity is expected to reach 508 gigawatts by the end of 2027, up 3% from 2025. Summer natural gas demand for power generation is expected to average 42.2 Bcf/d this year, up 0.5 Bcf/d from summer 2025, before rising to 46.3 Bcf/d in summer 2027. Renewable generation will supply much of the increase in electricity output, while gas plants will continue to meet peak demand, according to the EIA. The EIA expects total US natural gas consumption to increase by 3.1 Bcf/d from 2025 to 2027, with the electric power sector accounting for 2.3.