Growing Demand for Natural Gas Driving Expansion of Appalachian Midstream Infrastructure

A new report highlights supply chain opportunities for regional manufacturers.

PITTSBURGH, PA, UNITED STATES, January 22, 2026 /EINPresswire.com/ -- Rising demand for electricity to power AI data centers, industrial production, and energy exports is driving renewed growth in the Appalachian natural gas midstream sector. A new report from the Energy & Manufacturing in Appalachia (EMA) initiative examines how expanding pipeline, gathering, processing, and storage infrastructure is creating significant supply-chain opportunities for Appalachian manufacturers that support midstream development.

The EMA initiative is led by Catalyst Connection, southwestern Pennsylvania’s economic development organization, along with the following regional partners: Alliance for Manufacturing and Technology (AMT), Innovative Manufacturers Center, Magnet, Manufacturers Resource Center, MANTEC, Maryland MEP, Northeastern PA IRC, Northwestern PA IRC, Reimagine Appalachia, and West Virginia University.

“The Appalachian Basin is entering an inflection point, as natural gas demand rises and infrastructure constraints are being addressed,” said Petra Mitchell, President and CEO of Catalyst Connection. “Appalachian manufacturers are at the front lines of this transformation, supplying the equipment needed to build out the midstream sector connecting our region to domestic and global markets.”

Midstream Sector Experiencing Robust Buildout

The midstream sector connects upstream natural gas production to end-use markets through gathering systems, processing plants, fractionation facilities, storage infrastructure, and long-haul transmission pipelines. Appalachian production reached approximately 35–36 billion cubic feet per day in 2024, representing more than 30 percent of total U.S. natural gas output. For much of the past decade, limited takeaway capacity constrained growth, but recent pipeline expansions are beginning to unlock new market access, with additional projects in development.

The completion of the Mountain Valley Pipeline (MVP) in June 2024 marked a major inflection point for the region, adding 2.0 Bcf/d of new takeaway capacity and contributing to a year-over-year production increase. Additional projects, including the Regional Energy Access Expansion on the Transco system, are further improving access to northeastern markets. Over the next few years, continued infrastructure expansion is expected to support production growth through 2030 as demand rises from multiple sources.

Energy Production and Exports Driving Demand

Data center development, driven by artificial intelligence (AI) computing, is creating a growing demand for reliable power. Southeastern utilities are also pursuing major expansions of natural gas-fired generation capacity, driven by industrial and residential demand. In the next five years, an estimated 23 new or expanded industrial projects will begin operations, led by fertilizer and petrochemical plants. In addition, Gulf Coast Liquefied Natural Gas (LNG) export growth and lower costs of long-haul transportation are driving demand for Appalachian supply. Together, these factors are driving renewed investment in midstream infrastructure across the basin.

Manufacturing and Supply Chain Opportunities

EMA’s Energy Overview Segment: Midstream report highlights supply-chain opportunities for small and medium-sized manufacturers, including:

• Pipe, tubing, and fittings used in gathering systems, transmission pipelines, and processing facilities
• Valves, pumps, and compressors for gas movement, pressure regulation, and flow control
• Storage tanks and pressure vessels used in processing, fractionation, and storage operations
• Control systems, sensors, and instrumentation for monitoring flow, pressure, safety, and emissions
• Protective coatings, linings, and corrosion-control systems that extend infrastructure life
• Construction, maintenance, and inspection equipment supporting midstream operations and system integrity

As the Appalachian Basin enters a period of renewed infrastructure development and optimization, regional manufacturers can leverage existing expertise to support the next phase of midstream growth.

Read the full report.

About Catalyst Connection

Catalyst Connection is a southwestern Pennsylvania economic development organization dedicated to serving manufacturers. For more than 35 years, Catalyst has operated with a focus on powering potential through delivering technical assistance and management consulting services and developing long-standing partnerships across the region. Catalyst maintains a deeply held commitment to modernizing manufacturing and enabling opportunity across business enterprises, individuals, and throughout communities.

Catalyst Connection is supported, in part, by the Pennsylvania Department of Community and Economic Development and the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). As such, we are an affiliate of the Pennsylvania Industrial Resource Center (IRC) and the MEP National Network in southwestern Pennsylvania.

About the Energy & Manufacturing in Appalachia Initiative

The Energy & Manufacturing in Appalachia (EMA) initiative provides technical assistance and business support to small and medium manufacturers and enterprises in 156 counties of Maryland, New York, Ohio, Pennsylvania, and West Virginia seeking to expand business, production, and jobs in the energy supply chains or to be more energy efficient.

Allison Moux
Catalyst Connection
+1 412-918-4252
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