EIA Lifted Henry Hub Natural Gas Price Forecasts

SEATTLE (Oil Monster): In its most recent report, the U.S. Energy Information and Administration (EIA) raised its prediction for Henry Hub natural gas spot prices for both this year and next year.

According to this month's Short Term Energy Outlook (STEO), Henry Hub spot prices are expected to average $3.79 per million British thermal units (MMBtu) in 2025 and $4.16 per MMBtu in 2026. This contrasts with the January 2025 report's average spot price projections of $3.14 per MMBtu in 2025 and $3.97 per MMBtu in 2026.

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In the first quarter of 2025, Henry Hub spot prices are predicted by the EIA to average $3.70 per MMBtu. The second quarter will see $3.39 per MMBtu, the third quarter will see $3.95 per MMBtu, and the fourth quarter will see $4.11 per MMBtu.

An average price of $4.26 per MMBtu is anticipated in the first quarter of 2026, followed by $3.81 per MMBtu in the second quarter, $4.21 per MMBtu in the third quarter, and $4.35 per MMBtu in the fourth quarter.

In January of this year, Henry Hub spot prices were $4.13 per MMBtu, which was $1.00 more than the average of $3.01 per MMBtu in December 2024. Prices increased by 37% in January compared to December.

The EIA expects that Chinese taxes on US LNG exports will have minimal effects. According to the agency, U.S. LNG exports are being diverted to other markets because of the persistently high demand for LNG worldwide.