US Natural Gas Production to Hit New Record in 2026 on Surging LNG, Data Center Demand

U.S. energy companies are expected to achieve a second straight year of record natural gas production in 2026, positioning themselves to capitalize on surging global demand for liquefied natural gas (LNG) and the expanding power requirements of data centers.

Production Forecasts and Demand Drivers

According to the U.S. Energy Information Administration (EIA), domestic natural gas production is on track to climb from a record 107.6 billion cubic feet per day (bcfd) in 2025 to 112.2 bcfd in 2026. The agency projects further growth to 116.1 bcfd in 2027.

This output increase is being met by rising consumption. The EIA forecasts total U.S. gas demand will rise from a record 116.5 bcfd in 2025 to 120.0 bcfd in 2026, driven primarily by a 17% increase in LNG exports. Matthew Bernstein, vice president at Rystad Energy, told Reuters that the bulk of the production growth is anticipated to come from the Permian Basin and the Haynesville shale region.

"The bulk of that (growth) is coming from the Permian associated gas as well as the Haynesville," Bernstein said, noting that Permian growth is linked to rising oil production.

Corporate Strategy and Consolidation

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Major producers are signaling plans to boost efficiency, increasing output while holding capital spending steady or even reducing it. This trend is occurring alongside significant market consolidation, highlighted by EQT's announced acquisition of Range Resources.

EQT, the nation's second-largest gas producer, announced a $13 billion all-stock deal to purchase Range Resources, which will create the largest natural gas producer in the United States. The combined entity is expected to have net production exceeding 9 bcfed. The transaction is anticipated to close in the first quarter of 2027.

Market Context

Leading producers are preparing for a shifting energy landscape. Ahead of their third-quarter earnings reports, top firms have indicated disciplined spending for 2026 while targeting higher production volumes.

For example, EQT said earlier this year it was reducing its 2026 maintenance capital spending guidance while boosting its production forecast for the year. The broader increase in associated gas from the Permian Basin comes as U.S. energy firms extract more oil to meet global demand amid supply disruptions, with a recent EIA outlook suggesting spot U.S. crude prices could reach four-year highs in 2026.