On the strength of exports and domestic consumption, natural gas spot prices at Henry Hub are expected to average $2.78/MMBtu in the second quarter and $3.05 for 2021 overall, the U.S. Energy Information Administration (EIA) said Tuesday.

The updated projections, published in the May edition of the agency’s Short-Term Energy Outlook, represent a modest increase in EIA’s 2021 natural gas price forecast. Last month, EIA predicted an average Henry Hub price of $2.73 for the second quarter and $3.04 for the full year.

Henry Hub averaged $2.66 in April, a slight increase over the March average of $2.62. Spot prices this year are on track to far exceed the 2020 average of $2.03.

EIA highlighted growth in liquefied natural gas (LNG) exports and rising domestic consumption —...