Natural gas spot prices at Henry Hub will average $2.65/MMBtu in the second quarter before climbing above the $3 mark in 3Q2023 amid increased consumption and flat domestic production, according to updated projections from the Energy Information Administration (EIA).

STEO

Henry Hub prices also averaged $2.65 in the first quarter as “spring-like” temperatures tamped down demand in early 2023, the agency noted in its latest Short-Term Energy Outlook (STEO) released April 11. 

However, prices are poised to rise later this year as summer cooling demand kicks in and as production volumes remain “relatively flat,” according to the latest STEO.

“We expect relatively flat U.S. natural gas production, rising demand for feed gas from Freeport LNG as the export terminal returns to...