The baseline projection states that natural gas “will continue to play a major role in an increasingly competitive energy mix.” Gas demand is expected to grow from 21.9 quads in 1998 to 33.7 quads in 2015 (Figure 1).
However, the gas industry is going to have to adapt to a rapidly changing market structure and new competitors. With increased competition and tight margins, gas-electric industry consolidation will continue to look attractive. But the report says that this will be slow in coming.