BAKU, Azerbaijan, January 15. U.S. natural gas prices are expected to rise in the coming years, with the Henry Hub benchmark spot price averaging $3.10 per million British thermal units (MMBtu) in 2025 and increasing to nearly $4.00/MMBtu by 2026, according to the latest forecast from the U.S. Energy Information Administration (EIA), Trend reports.
This upward price pressure is driven by expectations that natural gas inventories will remain at or below the five-year average during the forecast period, as demand continues to outpace supply. Monthly Henry Hub prices are projected to fluctuate between $2.50/MMBtu and $3.90/MMBtu in 2025, and between $3.50/MMBtu and $4.40/MMBtu in 2026, with growing exports of liquefied natural gas (LNG) contributing to the price increase.
The forecast assumes that natural gas supply in the U.S. will grow by 1.4 billion cubic feet per day (Bcf/d) in 2025. However, demand will outpace supply growth, rising by 3.2 Bcf/d, largely driven by the increase in LNG exports. Additionally, colder weather, particularly during the winter months, is a key factor that could introduce further volatility to natural gas prices.
While the EIA expects prices to rise from 2024’s record lows, there remains potential for prices to increase more gradually than anticipated, especially if the ramp-up in new LNG production is slower than expected or if the Golden Pass LNG facility, scheduled to come online in 2025, faces delays.