The Energy Information Administration (EIA) projects that the U.S. benchmark natural gas spot price at Henry Hub will decline by about 2% to just under $3.50 per million British thermal units (mmBtu) this year, before gaining in 2027 to nearly $4.60 per mmBtu.
The EIA attributed the decline to annual supply growth keeping pace with demand throughout the year. However, it noted that next year, demand growth is expected to outpace supply, driven primarily by increased feed gas requirements from U.S. liquefied natural gas (LNG) export facilities.
The agency expects natural gas supply growth to exceed demand growth by 0.5 billion cubic feet per day (Bcf/d) in 2026, but then lag behind by 1.6 Bcf/d in 2027.
(Reporting by Ashitha Shivaprasad in Bengaluru)