The U.S. Energy Information Administration (EIA) is slashing its projected 2024 average Henry Hub natural gas spot price by 14% versus its month-earlier forecast after observing record lows for the benchmark in February, the agency said Tuesday.

EIA, in its latest Short-Term Energy Outlook (STEO), modeled an average Henry Hub price of $2.27/MMBtu for 2024, with prices expected to then climb to $2.94 on average for 2025.

Natural gas price movements in Mexico closely track those in the United States because of Mexico’s heavy reliance on U.S. pipeline imports. 

Henry Hub averaged only $1.720 in February, a record low when adjusting for inflation, EIA said. Mexico’s IPGN natural gas price index averaged $3.765/MMBtu in January, the latest month for which official data is...