The Energy Information Administration (EIA) said this week that it’s raising its expected average 2021 Henry Hub natural gas spot price to $3.07/MMBtu, which would come in more than $1 above the $2.03 average recorded in 2020.

In the June edition of its Short-Term Energy Outlook issued Tuesday, the agency said it expects the average spot price at the national benchmark to average $2.92 for the third quarter. The $3.07 forecast for 2021 prices overall comes in slightly higher than the $3.05 average Henry Hub price EIA forecast a month ago. Henry Hub spot prices averaged $2.91 in May, up from $2.66 in April.

Growth in liquefied natural gas (LNG) exports and higher domestic consumption outside of the electric sector remain the driving factors behind stronger natural gas prices...