NWGA Releases 2026 Pacific Northwest Gas Market Outlook
- 3 days ago
- 3 min read
FOR IMMEDIATE RELEASE
PORTLAND, OR – July 14, 2026 – The Northwest Gas Association (NWGA) today released its 2026 Pacific Northwest Gas Market Outlook (Outlook), a comprehensive assessment of natural gas supply, prices, demand, infrastructure and emerging energy challenges across British Columbia, Idaho, Oregon and Washington.
The report arrives at a pivotal moment for the region as policymakers, regulators, utilities, businesses and ratepayers confront a rapidly changing energy landscape marked by rising energy demand, replacing existing power generation with renewable alternatives, growing reliance on natural gas-fired generation for meeting peak demand, increasing electrification, large electricity consumers and mounting infrastructure constraints.
Released under the theme "Let's Get Real About Energy," the Outlook calls for a pragmatic, fact-based conversation about how the Pacific Northwest can continue delivering reliable, affordable and lower-carbon energy while meeting growing demand.
"The energy conversation has evolved," said Kelly Fukai, Chief Executive Officer of the Northwest Gas Association. "This is not a gas versus electricity debate. It's about understanding the realities of the energy system we have today and the one we're building for tomorrow. The Pacific Northwest is entering a new era of energy demand, and reliability, affordability and sustainability must advance together."
Among the report's key findings:
Natural gas remains a critical direct-use energy source for nearly 10 million residents, 3.7 million households, and 350,000 businesses across the region.
Regional natural gas demand is expected to grow modestly overall, with important differences by jurisdiction, customer class, and season.
The electric grid is relying more on natural gas-fired generation as coal resources retire, renewable resources expand, and peak demand grows.
The January 2024 multi-day cold snap highlighted the region’s exposure to energy supply shortfalls and made clear that natural gas and electric systems are deeply interconnected and must be planned together.
Major natural gas pipelines and storage facilities are already operating near capacity during winter peaks, limiting flexibility during prolonged severe weather.
Renewable natural gas, hydrogen, energy efficiency, and infrastructure modernization can reduce emissions while helping preserve reliability and affordability.
The Outlook also highlights the work of the joint NWGA-Pacific Northwest Utilities Conference Committee (PNUCC) Gas-Electric Coordination Initiative, which was launched following the January 2024 cold weather event to enhance natural gas and electric coordination and raise awareness about the increasing interdependencies. The initiative brings together electric utilities, natural gas utilities, pipelines, power producers and regional energy organizations to strengthen operational coordination, align planning assumptions, and improve communication.
PNUCC Executive Director Crystal Ball emphasized, “The gas and electric systems are like two partners carrying a heavy load—they must move in sync. This initiative is about making sure we’re coordinating closely and planning carefully to maintain reliability.”
"One of the clearest lessons from recent years is that natural gas and electricity are no longer separate conversations," Fukai said. "They are increasingly part of a single, interconnected energy system. The question is not gas versus electricity. The question is how we ensure both systems work together to meet the region's future energy needs."
The report emphasizes ten key energy realities shaping the Pacific Northwest:
Energy demand is growing across the region.
Reliability is tested during peak demand.
Natural gas and electricity are increasingly interdependent.
Energy infrastructure is essential to reliability and resilience.
The region will need every available energy tool.
Direct use of natural gas continues to provide value.
Reliable energy supports homes, businesses, and communities.
Affordability remains central to energy planning.
Energy fuels the regional economy.
Decarbonization is advancing through innovation and practical solutions.
Together these realities point to a clear need for coordinated planning, technology-neutral policies, infrastructure investment, and continued focus on customer affordability.
"The Pacific Northwest has ambitious energy and climate goals," Fukai added. "Meeting them will require more than aspiration. It will require realism, coordination and a willingness to face the tradeoffs in front of us. We hope this Outlook contributes constructively to that conversation."
The full 2026 Pacific Northwest Gas Market Outlook is available at: https://www.nwga.org/_files/ugd/669a08_b34d000db160455cacd92ea9d395454a.pdf
About the Northwest Gas Association
The Northwest Gas Association is a bi-national trade organization representing natural gas utilities and transmission pipeline companies serving communities throughout British Columbia, Idaho, Oregon, and Washington. NWGA works to promote safe, reliable, affordable and increasingly lower-carbon energy solutions while supporting sound public policy and informed regional energy planning. For more information NWGA and our research, please visit our website at nwga.org and https://www.nwga.org/research-and-data.
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Media Contact:
D. Scott Peterson m (503) 236-8776 peterson@libertystarstrategies.com