U.S. Henry Hub Natural Gas Prices Seen Easing in 2026, Surging in 2027: EIA STEO

SEATTLE (Oil Monster):U.S. benchmark natural gas prices at the Henry Hub are projected to ease slightly in 2026 before surging in 2027, according to the January Short-Term Energy Outlook (STEO) by the U.S. Energy Information Administration (EIA).

The Henry Hub spot price is expected to decline by around 2% to just under $3.50 per million British thermal units (MMBtu) in 2026, reflecting supply growth that broadly keeps pace with rising demand. However, prices are forecast to rebound sharply in 2027, climbing by about 33% to nearly $4.60/MMBtu as demand growth begins to outstrip supply.

In 2026, U.S. natural gas supply is forecast to increase by 1.1 billion cubic feet per day (Bcf/d), exceeding demand growth of 0.6 Bcf/d. This balance is expected to reverse in 2027, when demand is projected to rise by 2.5 Bcf/d, surpassing supply growth of 0.9 Bcf/d and placing upward pressure on prices.

Rising demand is largely driven by expanding liquefied natural gas (LNG) exports. LNG exports are forecast to grow by 9% in 2026 and 11% in 2027, supported by new capacity from Plaquemines LNG, Corpus Christi Stage 3, and Golden Pass LNG. Domestic consumption is expected to remain relatively flat, as lower residential, commercial, and industrial use is offset by higher demand from the electric power sector amid continued reliance on natural gas-fired generation.

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