The global midstream energy industry is likely to expand only modestly through 2023 and next year, given slumping natural gas prices and stubbornly high inflation, according to Moody’s Investors Service.

The rating agency’s research arm, in a new outlook, emphasized the modest growth would follow strong performances across 2022, a year in which energy demand and commodity prices advanced, led by surging natural gas prices in Europe, Asia and the United States. New York Mercantile Exchange natural gas futures, for example, approached $10/MMBtu last summer, reaching 14-year highs amid robust summer cooling demand, elevated calls for U.S. LNG and relatively modest production. Oil demand and prices rebounded last year from pandemic lows.

However, natural production has since...