Supply disruptions shift attention to North America
Speaking with Proactive's Steve Darling, Morris said buyers seeking dependable energy supplies could turn increasingly to the United States and Canada. That opportunity extends beyond liquefied natural gas to crude oil and natural gas liquids such as ethane, propane and butane.
A September 2026 VettaFi analysis linked faster North American LNG expansion to disruptions in the Middle East. It reported that the effective closure of the Strait of Hormuz had halted roughly 20% of global LNG trade, while damage from Iranian strikes on Qatari export terminals could constrain their output for three to five years.
The analysis also said Europe entered the winter heating season with its lowest natural gas inventories in 15 years. Storage levels were below the 80% threshold required by the European Commission for November.
LNG construction underpins the demand outlook
Morris pointed to U.S. LNG projects already being built as the basis for an expected doubling of export capacity by 2031. VettaFi's September analysis put total U.S. peak nameplate LNG export capacity at 18.7 billion cubic feet per day (Bcf/d), with construction set to lift it to 37.4 Bcf/d over the next five years. For comparison, U.S. natural gas consumption totaled 91.9 Bcf/d in 2025.
The September review identified three major U.S. LNG projects sanctioned during 2026. Venture Global's CP2 LNG Phase 2, with capacity of 1.1 Bcf/d, was sanctioned in March; Caturus Energy's 1.3 Bcf/d Commonwealth LNG followed in May; and Delfin Midstream's 0.6 Bcf/d Delfin FLNG 1 followed in June.
Other proposed capacity was still awaiting investment decisions. As of September, Canada's 1.6 Bcf/d Ksi Lisims LNG project and 1.8 Bcf/d LNG Canada Phase 2 expansion were targeting final investment decisions by year-end. Mexico's 1.1 Bcf/d Amigo LNG project was also positioning for a decision before the end of 2026.
A September market report from Énergir showed the scale of existing export demand: U.S. gas consumption for LNG exports averaged 15.2 Bcf/d during summer 2026, with daily records of about 19 Bcf/d. The report put export-related consumption more than 2 Bcf/d above summer 2025 levels. U.S. production also set records, at times exceeding 110 Bcf/d, with the Permian Basin driving most of that growth.
Power generation and data centers add potential demand
LNG exports are not the only source of potential growth. Morris also cited Canadian LNG development, power generation, industrial reshoring and the rising electricity requirements of AI data centers.
The Énergir report, citing S&P Global data, put U.S. demand from data centers powered directly by natural gas at about 0.2 Bcf/d. That could climb to nearly 3.7 Bcf/d by 2031, substantially above earlier forecasts, with growth concentrated in Texas. Canadian data center gas demand, currently negligible, could exceed 0.5 Bcf/d by 2031.
Infrastructure investment and the income case
Meeting higher demand could require more investment across gas production, processing, transportation and exports, Morris said. She highlighted potential growth for pipelines, processing plants and export facilities as opportunities for midstream companies.
Morris also described features that could appeal to investors during inflationary periods: midstream businesses own physical infrastructure and often have contractual inflation adjustments. At Enbridge, she noted, approximately 80% of EBITDA is protected against inflation.
For income-focused investors, she pointed to dividends, free cash flow generation and the possibility of dividend growth. She also said the sector's historically modest correlations with other asset classes could offer diversification benefits.
VettaFi's September analysis illustrated the sector's exposure through the Alerian Midstream Energy Select Index (AMEI). As of September 10, 2026, natural gas infrastructure accounted for roughly 70% of its weighting, while LNG pure plays represented a combined 8.6%. The index yielded 4.5% on that date. Its U.S. and Canadian constituents include Enbridge, Kinder Morgan and Pembina, and it carries a 25% weighting in master limited partnerships (MLPs).
