Gas Power Generation: Connecting Pipelines to the Digital Grid

As the energy transition accelerates, the connection between gas pipelines and power generation is becoming one of the most critical links in the energy value chain. This page explores how natural gas infrastructure underpins the reliability, flexibility and scalability demanded by the digital economy. 

Understanding Gas Power Generation

Gas power generation converts the chemical energy in natural gas into mechanical energy, then into electricity. Its reliability, quick ramping and flexibility make it indispensable for continuous high-demand loads. 
 
AI is fueling rapid data center growth, and energy demand is rising with it. For midstream gas transmission companies, it’s a chance to put existing infrastructure to work powering this new wave of development. 
 
Gas-fired power plants offer three major advantages: 

  • Reliable baseload power for continuous electricity to keep operations running. 
  • Quick ramp-up capability to manage peaks and renewable variability.  
  • A more efficient energy mix that blends with renewables to cut costs and environmental impact. 

Why Natural Gas Is Key to Powering the Digital Infrastructure Boom

2.5x

More Efficient

Natural gas delivers 2.5 times the output of solar PV on a per-capacity basis, making it the most scalable fuel source for high-demand digital and industrial loads.

45%

Lower CO₂ Emissions

Compared to coal, natural gas emits 45% less carbon dioxide, providing a proven path to reduce power-sector emissions without sacrificing reliability.

60%

Emissions Reductions

Natural gas has driven more than 60% of total emissions reductions in the power sector since 2005, more than any other energy source.

99%

Reliability

With rapid start-up and shut-down capabilities, gas-fired plants balance fluctuating electricity demand and renewable variability to keep the grid stable.

50%

Ramp in Minutes

Combined-cycle natural gas power plants can ramp generation by 50% or more within minutes, delivering both dependable baseload power and fast on-demand support.

100

GW of Coal Retirements by 2030

As more than 100 GW of coal capacity retires across the U.S., natural gas is emerging as the primary replacement, sustaining reliable power through the energy transition.

Types of Gas Power Plants

Gas generation plants vary based on operational needs: 

  • Open cycle gas turbine (OCGT): Single gas turbine; rapid starts and high ramp rates make it ideal for peaking and contingency reserves. 
  • Combined cycle plants: Use both gas and steam turbines for high efficiency; suited for baseload and mid-merit operations. 
  • Reciprocating engine plants: Multiple fast-start engines offering modularity and resilience, ideal for microgrids or islanded operations. 
  • Peaker plants: Activated during high-demand periods, complementing baseload and renewable energy to stabilize the grid. 

The U.S. Gas-Fired Generation Landscape

The mix of gas power generation varies by region, influenced by renewable penetration, demand patterns and grid characteristics. Understanding these differences helps midstream operators pinpoint where to expand pipelines, upgrade compression and deliver fast-response gas supply to meet future demand. 

  • ERCOT, MISO, SE and SPP: These markets tend to favor combined-cycle gas plants for baseload generation. With moderate renewable penetration and steady load growth, combined-cycle facilities offer efficient, reliable power to replace retiring coal and support rising electricity needs. 
  • PJM and High-Wind Regions: In these areas, peaker plants dominate due to their fast-start capability and flexibility in managing variable wind output. 
  • California (CAISO): With high solar penetration, California increasingly relies on peakers and energy storage paired with gas to handle the “duck curve” — rapid midday ramp-downs and steep evening ramp-ups. 
  • New England (ISO-NE) & New York (NYISO): These regions face winter peaks and transmission constraints, requiring flexible peakers or smaller modular combined-cycle units to supplement renewables and maintain reliability. 
  • U.S. Capacity Outlook: By 2050, about 68% of gas-fired generation capacity is expected to come from combined-cycle plants, with most of the rest from peakers. This mix reflects a balanced strategy — efficiency for steady baseload and flexibility for variable, on-demand power. 

The Data Center Frontier: What to Know

As U.S. generation capacity evolves, one of the most significant new drivers of power demand comes from hyperscale data centers. These facilities are reshaping load patterns and creating unprecedented demand for reliable, dispatchable power generation. 

  • U.S. load growth: Total electricity demand is projected to grow 42% by 2050, fueled by population growth, expanding data center infrastructure, and EV adoption, partially offset by behind-the-meter (BTM) residential solar and storage. 
  • Regional highlights: ERCOT shows notable baseload growth due to Texas’ industrial base and population surge, while PJM and the Southeast maintain the highest baseload and intraday variability. 
  • Load growth hotspots: SE, PJM, ERCOT and WEST regions are expected to see the largest load increases through 2050. 
  • Variability trends: SE, WEST and CAISO exhibit the greatest variability when accounting for load modifiers, which include both adders and offsets. 
  • Data center impact: By 2050, data center demand is estimated to add 153 GW of capacity, with PJM and the Bonneville Power Administration (WEST BPAT) regions seeing the most growth thanks to strong subsea and onshore fiber infrastructure. 

7 Ways Midstream Operators Are Uniquely Positioned to Capitalize on Power Demand

With electricity demand accelerating and coal retirements reshaping the generation mix, midstream operators are already capturing value from this transformation, leveraging their proximity to demand centers, existing infrastructure and operational flexibility. 

  1. Leverage existing natural gas infrastructure: Supply gas directly to power plants, reducing the need for new buildouts and accelerating project timelines.
  2. Seize electrification opportunities: As upstream operations electrify to meet ESG goals and reduce flaring, midstream players can develop gas-to-power projects for local microgrids, positioning themselves as providers of reliable, lower-emission power.
  3. Drive emission reduction: Methane fees, operational requirements and tax incentives reward emission mitigation. Gas-fired power projects help decarbonize by displacing coal and improving overall carbon intensity.
  4. Provide reliable, low-cost fuel: Direct access to natural gas enables midstream companies to support grid stability amid growing demand and renewable intermittency.
  5. Utilize co-located fiber: Pipeline corridors often include high-capacity fiber, allowing integration of monitoring, automation and data-intensive energy solutions that improve efficiency and uptime.
  6. Offer tailored power generation: Right-size plants and design flexible ramp schedules to respond dynamically to industrial loads, grid stress or peak pricing events.
  7. Deploy assets near demand centers: With strategic footprints spanning all major ISOs and energy basins, midstream operators can deploy assets quickly where power is most constrained or economically advantageous.

Gas Power Generation: Environmental Impact and Emissions

Emissions from gas-fired power generation primarily include CO₂ from combustion and methane (CH₄) from the upstream supply chain. In high-efficiency combined-cycle plants, CO₂ emissions per megawatt-hour are substantially lower than coal due to higher thermal efficiency and the lower carbon intensity of natural gas. Enverus Emissions and Regulatory Analytics helps operators track compliance, assess regional regulatory risk and model emissions impacts on projects. 

Key Regulatory Considerations

Details
Why It Matters

Waste Emissions Charge  

  • A methane-based fee established by the EPA under the Inflation Reduction Act of 2022. 

Rising methane fees increase the cost of gas supply to power plants, tightening midstream margins and incentivizing stronger leak detection and emissions control programs. 

Quad O Regulations 

  • Quad O” refers to the EPA’s New Source Performance Standards (§111) for oil and gas operations. 
  • Subpart OOOOb applies to new or modified onshore sources; Subpart OOOOc covers existing ones. 
  • These rules tighten methane and VOC limits, enhance leak detection and repair, and aim to curb routine flaring. 

For midstream assets that serve or rely on gas infrastructure (processing plants, compressor stations, gathering systems), these standards raise operational expectations and can increase costs for new or modified assets. 

Super-Emitter Response Program 

  • This EPA program, in connection with Quad O, is designed to identify super-emitter methane leakage events over 100 kg/hr of methane and mandates operator response, investigation and remediation following thirdparty or remotesensing detection. 

Increased regulatory scrutiny or cost may influence gas supply reliability, cost or the attractiveness of certain supply basins. Midstream companies working with power generation customers may need to highlight their emissions performance (including leak mitigation) as part of the value chain. 

Rule 111 

  • The EPA’s Rule 111 establishes greenhouse gas limits for new and existing gas-fired power plants. While still under review, it could reshape where and how new gas plants are built. 

Stricter rules could reshape investment decisions, accelerate adoption of carbon capture, or shift growth to states with favorable policies. 

Conclusion: Connecting Today’s Infrastructure to Tomorrow’s Power Demand

From the wellhead to the wire, the gas-to-power story is one of connection — between molecules and megawatts, data and decisions. As demand for clean, reliable energy grows, midstream companies sit at the heart of that story. With Enverus, you can measure emissions, model economics and map out the infrastructure that powers a digital world efficiently, responsibly and profitably. 

Learn More

Related Content

Enverus Blog - Oil and gas procurement automation: End project delays and overspending
Business Automation Operators
BySusie Yuill
November 2, 2023

Purchase order automation has the power to relieve oil and gas operators and OFS companies of many headaches in the procure-to-pay process. Energy companies continue to manage the procurement process using tedious, manual workflows that result in the same issues...

3 Key Efficiency Metrics for Enhanced Operations With Enverus PRISM® Activity Analytics
Energy Analytics Midstream
ByEnverus
December 6, 2022

Understanding the timing of each stage of preproduction, known as efficiency metrics, is imperative for having confidence in forecasting cycle times of operators and service companies. This helps ensure equipment is fully utilized and groups know what’s needed for each...

Carbon Capture, Utilization & Storage: Finding Opportunities in an Emerging Market
Energy Analytics Midstream
ByEnverus
November 1, 2022

The current state of carbon capture, utilization and storage (CCUS) is dominated by the supermajors and large midstream companies who can afford to absorb risks in this emerging market. CCUS project developers are forging ahead without the typical commitments between...

business-persons-working
Business Automation Energy Analytics
ByEnverus
September 28, 2022

Saying the energy industry — an industry accustomed to challenge and change — has been rocked over these past few years is probably an understatement. Pandemics, wars, wildly variable oil futures, rapidly changing energy policies and inflation have quickly increased...

Planet earth with sun rising from space
Energy Analytics Midstream
ByEnverus
August 17, 2022

Part 1: Pinpointing CO2 emitters Global alignment on net zero policies, Wall Street sentiment, and large tax credits from the U.S. and Canadian governments for carbon capture investment, are leading to exciting new opportunities for historically midstream service providers. Dominated...

Related Solutions

Comprehensive midstream solutions to enhance development strategies and optimize assets. Our midstream packages cater to your unique needs, spanning business growth, future viability assessment and opportunity identification across the asset lifecycle, ultimately supporting profitable decision-making.

Read More

Analyze more deals, spot emerging opportunities and stay ahead of the competition with the industry’s most comprehensive M&A database for oil and gas. Access unparalleled insights for deal teams, executives and investors, all backed by top-tier data and technology and delivered to you in real time over the web and mobile devices. Read More

Arm yourself with the knowledge to inform strategic decisions and grow your business with one source for insights across oil and gas, renewables, carbon capture and ESG.

Read More

Understand drivers of competitor performance and economics for faster deal evaluation, smart design decisions and increased capital efficiency. Whether you need to quickly evaluate oil well performance or run detailed type curve analysis, Enverus offers pre-generated and customizable forecasts and economics in one platform.

Read More

Securely blend your internal, high-resolution data with Enverus analytics-ready data sets and models.

Read More

The market is valuing inventory more than ever, but it’s a complex problem to solve. Enverus inventory solution combines the power of assessing productivity at the DSU level, quickly evaluating well placement scenarios and seamlessly integrating your own data for fully customizable workflows

Read More

Respond faster to rig and activity trends with real-time GPS and satellite telemetry data analytics.

Read More

Field Development Studio (FDS) streamlines development planning by integrating PDP forecasts and unique PUD scenarios with customized schedules, offering insights into production impacts and capital requirements for any asset or region.

Read More

With Enverus Instant Analyst™, you receive answers you can trust, delivered in seconds. Sourcing from 25+ years of vetted data and research on the most trusted SaaS platform designed exclusively for energy.

Read more

Tune out the noise, get unbiased evaluations and uncover hidden opportunities with advice you can trust from experienced energy and power intelligence advisors.

Read More

OpenOrder, a purchase order software made for oil and gas, increases spend visibility and controls without burdening operations, with flexibility to issue, approve and track procurement of services and materials with a purchase order.

Read More

Digitize and automate invoice processing and approvals with oil and gas enterprise accounts payable software.

Read More

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert