North American natural gas demand is likely to grow by roughly 25% over the next 10 years and stay resilient through 2050 as the world shifts to lower-carbon energy, according to new projections from Wood Mackenzie.

LNG exports are expected to drive the incremental demand, which will largely be supplied through continued growth in associated gas from the oily Permian Basin and gas-directed drilling in the Haynesville Shale, researchers said in the new report.

Liquefied natural gas exports “will drive the market for many years but will slow substantially in the 2030s, with domestic gas demand peaking in the mid-2030s, as power sector demand gives way to greater renewables penetration, albeit at a more gradual pace compared to our prior outlook, due to power transmission...