Natural gas spot prices at Henry Hub are poised to ascend to an average $3.42/MMBtu in January on a combination of space heating demand, rising liquefied natural gas (LNG) exports and lower production, according to updated projections from the Energy Information Administration (EIA).

STEO

In its latest Short-Term Energy Outlook (STEO), published Tuesday, EIA said it expects monthly average spot prices to remain above the $3 mark through 2021, averaging $3.14 for the year, a dollar improvement over the projected full-year 2020 average of $2.14.

The agency’s latest natural gas price forecast carries over similar themes from last month’s STEO.

LNG exports have been booming recently, and EIA’s measure of October export volumes showed a clear uptrend. EIA estimated exports...