Natural Gas vs. Electricity
It is widely recognized that electricity infrastructure as struggling to accommodate rapid data-center growth. The natural-gas sector is also under pressure from rising power demand, but it has generally been able to respond by drilling more wells, expanding gathering systems, adding compression, and building pipelines. U.S. marketed gas production is on track for a record 122.5 Bcf/day in 2026, up about 4% from the first half of 2025. Meanwhile, developers plan roughly 44.9 Bcf/day of new pipeline capacity for 2026–27, with about 70% already under construction.
Why the difference? There are many reasons but I will highlight just a few.
Natural gas producers respond directly to market prices. Electricity investment frequently runs through regulated planning and interconnection processes.
A natural gas buyer can contract directly for supply/infrastructure. A large electricity load normally enters a network shared with millions of existing customers.
Natural gas capacity can often be added commercially through contracts. Electricity reliability studies and cost allocation precede many grid additions.
Natural gas prices largely reveal supply-and-demand scarcity. Electricity prices reveal supply and demand through layers of grid constraints and market-design rules.
The differences compound dramatically.
CRE does something more fundamental than add generation. It makes part of the electricity sector behave more like the natural gas sector.
Contact us to learn more about CRE.
