EIA Raises Henry Hub Natural Gas Price Forecasts for 2026 and 2027 Amid Strong Demand Outlook

SEATTLE (Oil Monster): The U.S. Energy Information Administration (EIA) has raised its Henry Hub natural gas price forecasts for 2026 and 2027. The agency lifted its forecast, citing stronger demand expectations despite higher projected production levels.

In its latest Short-Term Energy Outlook (STEO), the EIA forecasts the Henry Hub spot price to average $3.60 per million British thermal units (MMBtu) in 2026 and $3.46 per MMBtu in 2027. These forecasts are higher than the agency's May outlook, which projected average prices of $3.50 per MMBtu and $3.18 per MMBtu, respectively.

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The EIA noted that Henry Hub prices averaged $2.94 per MMBtu in May, up 17 cents from April. The demand growth is expected to continue through the summer months, thus supporting prices in the near term, it said.

Meanwhile, the EIA noted that growing U.S. natural gas production will continue to limit significant price gains. Marketed natural gas production is projected to increase by 3.3% in 2026 and a further 2.5% in 2027. Much of the production growth will be driven by the Permian basin, followed by the Haynesville region.

According to the EIA, natural gas prices are likely to remain relatively stable over the longer term, mainly due to strong production and sufficient inventories.