Henry Hub natural gas spot prices will average $2.60-2.70/MMBtu in 2024 before climbing further next year amid higher LNG exports and slowing production growth, the U.S. Energy Information Administration (EIA) said Tuesday.

In its latest monthly Short-Term Energy Outlook (STEO), EIA called for a 2025 average Henry Hub natural gas spot price of $2.95. The benchmark averaged just $2.54 in 2023, a fraction of 2022’s average of $6.42, EIA data show.

“Record natural gas production and storage inventories that remain above the 2019-2023 average mean that natural gas prices in our forecast are less than half the relatively high annual average price in 2022,” researchers said.

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