Pacific Northwest Faces Growing Natural Gas Demand, Capacity Concerns
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Original Article: "Report: Northwest Natural Gas Demand to Grow 12.2 Percent by 2035"
Author/Source: Greg Mason, NewsData
Published: July 14, 2026
A newly released industry outlook is projecting significant growth in natural gas demand across the Pacific Northwest over the next decade, while raising concerns about whether the region's existing infrastructure can keep pace.
The Northwest Gas Association's 2026 Pacific Northwest Gas Market Outlook, covering Washington, Oregon, Idaho and British Columbia, projects:
12.2 percent cumulative growth in total regional natural gas demand over 10 years
Average annual growth of 1.3 percent across residential, commercial, industrial and generation sectors
Demand ranging between 4.8 percent and 21.7 percent growth depending on regional conditions, carbon costs and LNG export activity
Regional gas prices expected to remain below $6 per dekatherm through at least 2040 under base-case conditions
Key demand drivers identified in the report include:
Industrial expansion, projected to grow at 3.9 percent annually
The Woodfibre LNG export facility in British Columbia, scheduled to begin service in late 2027
Electric generation demand, which is now projected to grow slightly — reversing previous forecasts that had anticipated declines
Emerging loads from data centers and high-tech manufacturing facilities
A System Already Under Strain
The report highlights a critical infrastructure concern: the region's major gas pipelines and storage facilities already operate at above 90 percent capacity during winter months. Once Woodfibre comes online, utilization could exceed currently available capacity.
The January 2024 cold snap illustrated the real-world consequences of that strain. During the coldest hour of the event, natural gas supplied more than double the energy contribution of electricity, accounting for 64 gigawatt-hours compared to 27 gigawatt-hours from electric sources.
Industry Leaders Respond
“The gas and electric systems are like two partners carrying a heavy load—they must move in sync,” PNUCC Executive Director Crystal Ball said in a statement. “This initiative is about making sure we’re coordinating closely and planning carefully to maintain reliability.”
Following the 2024 winter storm, NWGA and PNUCC launched a Gas-Electric Coordination Initiative, focused on improved planning, analysis and transparency across both pipeline and grid infrastructure.
The Bottom Line
The report's central message is one of urgency around long-term planning. With capacity expansions requiring long lead times, the outlook calls for a forward-looking approach to infrastructure investment — one that treats natural gas and electricity as complementary components of a single, integrated regional energy system.
This summary is provided for informational and commentary purposes only. Readers are strongly encouraged to read the full original article via NewsData and review the referenced Northwest Gas Association's 2026 Pacific Northwest Gas Market Outlook available here.