BAKU, Azerbaijan, January 9. The U.S. benchmark Henry Hub natural gas price averaged $2.21 per million British thermal units (MMBtu) in 2024, according to data from the U.S. Energy Information Administration (EIA), marking the lowest annual average price in inflation-adjusted terms, Trend reports.
This represents a 16% decline from 2023 and a 68% drop from 2022, the largest two-year price decrease on record.
Throughout the year, EIA data shows that prices fluctuated between $3.25/MMBtu in January and a record low of $1.51/MMBtu in March. The market experienced a narrower range of monthly price fluctuations compared to the previous five years, largely due to strong U.S. natural gas supply and a reduction in demand.
The sharpest price increase occurred in January, when a cold snap pushed the Henry Hub price to its highest point of $13.49/MMBtu, as demand for heating surged. However, milder weather in February and March, combined with high natural gas storage levels, helped drive prices back down. By the end of March, U.S. gas storage was 25% higher than the previous year, reflecting the warmest winter on record.
Despite a slight rise in December due to seasonal winter demand, EIA data confirms that prices remained historically low for most of 2024. April and May saw record-low inflation-adjusted prices of $1.62/MMBtu and $2.14/MMBtu, respectively. U.S. natural gas consumption for air-conditioning during the summer reduced storage surpluses, but the market still entered the 2024–25 winter season with the highest storage levels since 2016.
Overall, the EIA reports that 2024 saw a series of low-price records, with the lowest average monthly prices ever recorded in February, March, April, and August, and the lowest daily prices as well. The U.S. natural gas market remains well-positioned entering the winter heating season.