Strong demand from the industrial sector and the “ripple effect” of Europe’s energy crisis will be among the key factors putting upward pressure on natural gas prices this summer, according to projections from the Natural Gas Supply Association (NGSA).

gas supply demand graph

In its 2022 Summer Outlook, published Wednesday, the trade group predicted downward pressure from weather and production compared to last summer, with low storage inventories and overall demand expected to apply upward price pressure.

NGSA said it expects the market to “remain in a tight balance this summer, resulting in upward pressure on natural gas prices compared to last summer’s average of $3.85/MMBtu” for Henry Hub. 

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