North American energy infrastructure is entering an immense era of expansion, fueled by long-term shifting demand dynamics. This reality is quantified in the INGAA Foundation 2025 Midstream Infrastructure Report
Key Takeaways
- Meeting North American energy demand through 2052 requires up to $1.4 trillion in new midstream infrastructure investment.
- Exploding data center power demand and a tripling of U.S. LNG exports serve as the primary catalysts for long-term natural gas demand.
- Robust project backlogs are providing midstream corporations and MLPs with unprecedented multi-decade growth visibility.
The report reveals that meeting North American energy demand through 2052 will require a total midstream investment of $1.2 trillion to $1.4 trillion over the coming 25 years. To put this into perspective, the capital required significantly exceeds the total market capitalization of the Alerian Midstream Energy Index, a composite of North American energy infrastructure companies, of $919 million. The largest share of this capital is earmarked for natural gas pipelines and liquefied natural gas (LNG) export facilities, with oil pipelines and gathering lines representing the next-largest investment categories.
Furthermore, the report shows that natural gas transmission capacity must increase by 70 billion cubic feet per day (Bcf/d). This growth represents a 39% increase from 2022 levels. It will require over 37,000 miles of additional natural gas transmission pipelines and 103,000 miles of gathering pipelines, according to INGAA.
Data Centers, LNG, and Midstream Infrastructure Investment Drivers
The AI buildout and global LNG export markets drive this robust demand growth. The report projects that U.S. data center power consumption will skyrocket from 300 terawatt-hours (TWh) in 2025 to 800 TWh annually by 2052. Natural gas serves as a crucial power source for grid reliability during this tech expansion. Because of this dynamic, the buildout provides midstream operators with robust gas backlogs that drive long-term growth visibility.
On the LNG side, international markets are increasingly viewing North American energy as highly attractive due to its lower risk profile. Consequently, U.S. LNG exports are expected to more than triple by 2052.
Midstream Growth Visibility and ETF Exposure
This massive capital requirement underscores the long-term investment case for energy infrastructure. For advisors looking to access this space, the Alerian MLP ETF (AMLP ) provides concentrated exposure to midstream MLPs. Meanwhile, the Alerian Energy Infrastructure ETF (ENFR ) offers a diversified approach by incorporating midstream C-corps. Notably, AMLP is the industry’s largest MLP ETF, and ENFR remains the lowest-fee ETF in the midstream segment.
Looking for midstream insights in your inbox? Subscribe here to keep a pulse on midstream investing through our weekly updates.
For more news, information, and analysis, visit the Energy Infrastructure Content Hub.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP and ENFR for which it receives an index licensing fee. However, AMLP and ENFR are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP or ENFR.
