Natural Gas Is Plentiful. Getting It Into AI Power Is the Hard Part
NEW YORK, Oct. 28, 2026 /CNW/ -- American News Group News Commentary - By the numbers, the fuel is the easy part. The Henry Hub spot price was $2.76 per MMBtu on October 27, according to U.S. Energy Information Administration data, and working gas in storage stood 35 Bcf above the five-year average in the week ended October 16. The pressure point for the AI buildout sits further down the chain, in the turbines, pipelines and grid rules needed to turn that gas into electricity for data centers. Global Market Insights estimates the global gas turbine market at $22.6 billion in 2025 and expects it to grow from $25.4 billion in 2026 to $64.8 billion by 2035, a CAGR of 11.2%. Active Companies from around the markets with current developments this week include: EQT Corporation (NYSE: EQT), Kinder Morgan, Inc. (NYSE: KMI), Baker Hughes Company (NASDAQ: BKR), Bloom Energy Corporation (NYSE: BE).
Supply keeps climbing. The EIA said U.S. natural gas gross withdrawals reached a record 137 billion cubic feet per day in July 2026, driven primarily by increased output in the Permian Basin. In its October Short-Term Energy Outlook, the agency forecast U.S. dry natural gas production of 112.20 Bcf/d this year and 116.13 Bcf/d in 2027, and said it expects the Henry Hub spot price to average $3.16 per MMBtu in 2027, down 32 cents from 2026. The EIA also said inventories remain above the rolling five-year average in most months of its forecast.
Power is a different story. The EIA expects wholesale electricity prices in 2026 to average $52 per megawatthour across the 11 hubs it tracks, 11% higher than in 2025, and forecasts that wholesale prices in the PJM region will rise 41% this year compared with 2025, the largest increase across all regions. Getting new load connected is also drawing new rules. On October 26, the Board of Trustees of the North American Electric Reliability Corporation adopted foundational computational load Reliability Standards. NERC said the adoption is the first phase of its broader large loads action plan, part of accelerated efforts to address the reliability risks associated with rapidly growing computational loads. NERC will file the standards with the Federal Energy Regulatory Commission for approval.
Regulators are also looking at the pipe. On October 15, FERC unveiled a draft policy statement that proposes to no longer request air dispersion modeling from applicants for Natural Gas Act projects, part of a proposal to overhaul and accelerate its review of air quality effects for proposed natural gas projects. Comments on the draft are due by November 16, 2026.
Earnings reports from across the gas-to-power chain are landing fast this month, and the moves that follow can be sharp. The free Knowledge is Power guide from Stock Preachers, available at americannewsgroup.com/sp, shows how to read the news and the charts together.
In other industry developments and happenings in the market this week include:
EQT Corporation (NYSE: EQT)
EQT reported third-quarter results on October 27, including sales volume of 583 Bcfe, inclusive of 21 Bcfe of strategic curtailments, and net cash provided by operating activities of $1,083 million. The company launched an open season for its new 42-inch POWER Pipeline project, connecting its core Marcellus assets in Pennsylvania to growing demand at the Clarington hub in Ohio, and signed a 10-year LNG sales agreement with Lithuania's Ignitis Group. EQT also highlighted its announced acquisition of Range Resources Corporation, which it said will create America's largest and only vertically integrated natural gas producer.
"Our expanded resource base solidifies EQT as the operator of choice for premium, long-term supply arrangements and provides unique growth optionality underpinned by contractual demand," said Toby Z. Rice, President and CEO of EQT.
Kinder Morgan, Inc. (NYSE: KMI)
Kinder Morgan reported all-time record third-quarter results on October 21, with net income attributable to KMI of $764 million, up from $628 million a year earlier, and a natural gas expansion project backlog of $13.2 billion within an overall $14.4 billion backlog. The company said more than 75% of the total backlog is associated with projects supporting power generation and local distribution company demand. Its Natural Gas Pipeline Company of America reached a final investment decision on the approximately $4.2 billion Permian Link Project (KMI share approximately $1.6 billion), designed to provide approximately 2.8 Bcf/d of capacity to serve new power generation for an A-rated hyperscaler, and Kinder Morgan sanctioned two more phases of its Creekside Lateral Project after signing additional long-term, take-or-pay agreements with data center and industrial customers.
"Our natural gas business in particular is benefiting from increasing LNG exports, rising power demand, and industrial expansion and is capitalizing on significant opportunities for investment across our footprint," said Richard D. Kinder, Executive Chairman of Kinder Morgan.
Baker Hughes Company (NASDAQ: BKR)
Baker Hughes announced on October 27 a major integrated power generation order for a major U.S. technology company's development for advanced computing. The award includes 34 Frame 5 gas turbines, nine NovaLT™16 turbines, generators and associated gears to provide approximately 1.1 GW of power generation to support high-performance computing infrastructure for AI model training, inference, and physical AI workloads. In its third-quarter results the same day, the company reported orders of $10.8 billion, including $5.9 billion of Industrial & Energy Technology orders, and a separate order of 18 Frame 5 gas turbine generator packages, representing approximately 500 megawatts of capacity, to support data center projects for a U.S. energy company.
"The AI revolution runs on energy, and Baker Hughes is building energy systems that will underpin the next era of industrial advancement," said Baker Hughes Chairman and CEO Lorenzo Simonelli.
Bloom Energy Corporation (NYSE: BE)
Bloom Energy reported record third-quarter revenue of $1,235.8 million on October 22, up 138.1% year over year, and raised its full-year 2026 revenue guidance to $4.4 billion to $4.6 billion, which the company said was its third increase to the outlook this year. Bloom's Energy Server is a solid-oxide fuel cell system that converts fuels including natural gas, biogas and hydrogen into electricity without combustion, according to its quarterly report, and the company counts data centers among the customers using its onsite power.
"What began with hyperscalers is rapidly moving across market segments because every business needs reliable power to grow," said KR Sridhar, Founder, Chairman and Chief Executive Officer of Bloom Energy.
From the wellhead to the turbine, each link in the chain that turns natural gas into power for AI has reported news this month. Learn to read the setups behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at americannewsgroup.com/sp.
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This article is independent news commentary. American News Group is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has not been paid by any company mentioned in this article. MEL and its owners, operators, directors, and affiliates do not currently own any shares of the companies mentioned in this article, but reserve the right to, and will, buy and sell shares of those companies at any time without further notice. Natural gas price, storage, production and forecast data are from the U.S. Energy Information Administration, including its October 2026 Short-Term Energy Outlook and its weekly storage report for the week ended October 16, 2026; reliability standards information is from the North American Electric Reliability Corporation and regulatory information from the Federal Energy Regulatory Commission. The gas turbine market projection is from Global Market Insights Inc. Company figures are as reported in company releases and filings dated October 21 to October 27, 2026. Information is drawn from company news releases and filings, government and industry data, published reporting and third-party data believed to be reliable, but its accuracy is not guaranteed. Investing in securities carries risk, including the loss of some or all of your investment. This document is governed by the laws of Ireland.
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