$50 Billion Pipeline Buildout Targets LNG, Power Demand Growth

Pipeline construction is accelerating across the U.S., with billions in investment targeting rising demand from LNG exports, power generation and industrial growth.

(P&GJ) — Pipeline construction activity is accelerating across the United States as operators expand capacity to meet rising demand from LNG exports, power generation and industrial growth, according to a report from the Institute for Energy Research.

Developers are advancing more than 150 projects nationwide, representing roughly 150 billion cubic feet of new capacity, as natural gas demand continues to climb across multiple sectors.

Much of the new infrastructure is focused on connecting supply basins to LNG export hubs along the Gulf Coast, particularly in Texas and Louisiana. Additional projects are also targeting growing demand from power generation, including gas-fired facilities supporting data center expansion.

Investment in new pipeline infrastructure has reached an estimated $50 billion, marking one of the largest construction waves in nearly two decades, according to industry data cited in the report.

Among the projects moving forward is the Northeast Supply Enhancement expansion of the Transco system, which will add capacity across New York, New Jersey and Pennsylvania and deliver additional gas from Appalachian production areas.

Cross-border infrastructure is also progressing. A proposed pipeline segment in Texas would transport natural gas from the Permian Basin to an LNG export facility in Mexico, though the project has faced delays tied to permitting and commercial factors.

Federal projections reinforce the need for additional infrastructure. The U.S. Energy Information Administration expects natural gas demand to grow significantly, driven by LNG exports and increased use in power generation and industrial applications.

Rising production, particularly from the Appalachian Basin and Permian region, is expected to require expanded takeaway capacity to move supply to demand centers, especially along the Gulf Coast.