Wood Mackenzie forecasts US natural gas prices will rise through 2035, ending a decade of low-cost supply driven by the AI boom and expanding LNG exports. The energy consultancy stated that AI data center construction and US LNG export infrastructure expansion will support strong demand. For 10 years through 2025, Henry Hub prices remained between $2 and $4 per MMBtu due to investment in independent gas fields and increased associated gas production from oil drilling.
Henry Hub Prices Maintained $2-4 Range Through 2025
According to Oil Price, Wood Mackenzie reported that US natural gas prices are preparing to rise through 2035 after a decade of low prices. For the 10-year period through 2025, Henry Hub prices stayed within a narrow range of $2 to $4 per MMBtu. This price stability resulted from operators investing in independent gas fields and increasing associated gas production during oil drilling operations. Improved well productivity and technological advances also contributed to increased gas production within the US.
US LNG Export Capacity to Nearly Double by 2031
Wood Mackenzie stated that the US has become the world's largest LNG exporter, surpassing Qatar and Australia. The consultancy forecasts that export capacity will nearly double by 2031 compared to December 2025. This expansion has enlarged overseas demand markets for US natural gas.
Gas Producers Face Supply Constraints
Wood Mackenzie analyzed that gas extraction companies have already developed most of the highest-quality gas reserves. The consultancy noted that technological progress has entered a stagnation period and that associated gas production will decline as oil drilling decreases.
Wood Mackenzie Predicts $5 per MMBtu by 2035
Wood Mackenzie forecasts that Henry Hub benchmark prices will rise over the next 10 years, reaching $5 by 2035 due to increased demand for power generation, industrial use, and exports. The consultancy emphasized that $5 remains internationally competitive as it is much cheaper than LNG prices in European and Asian markets.
US Gas Power Generation Capacity Nearly Tripled in 2025
According to Global Energy Monitor, US gas power generation capacity nearly tripled in 2025. More than one-third of this capacity is designated to supply electricity directly to data centers. A data center twice the size of Manhattan is planned for construction in northern Utah.
FAQ
What is driving US natural gas prices higher through 2035?
Wood Mackenzie identified AI data center construction and expanding US LNG export infrastructure as the primary drivers. The consultancy stated that export capacity will nearly double by 2031 compared to December 2025, while gas extraction companies have already developed most high-quality reserves and technological progress has stagnated.
What price level does Wood Mackenzie forecast for US natural gas by 2035?
Wood Mackenzie predicts Henry Hub prices will reach $5 per MMBtu by 2035, driven by increased demand for power generation, industrial use, and exports. This compares to the $2-4 per MMBtu range that persisted for 10 years through 2025.
