Continued production curtailments and rising electric power sector demand are expected to drive Henry Hub natural gas prices higher through the end of 2024 and lead to production growth in 2025, according to updated federal forecasts.
In the August release of its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) projected the national benchmark’s natural gas spot price average at about $2.60/MMBtu for the final five months of the year. That would be up 53.0 cents from the July average, but below the average of $2.69 during the same period in 2023.
Record low Henry Hub natural gas spot prices in the first half of the year led producers to curtail production. With prices still foundering, EQT Corp., the largest natural gas producer in the United States, said recently it would continue curtailing production by about 0.5 Bcf/d through the second half of the year.
Read More: EIA Raises Natural Gas Price Forecast Amid Curtailed Output, Strong Power Demand