U.S. natural gas prices are expected to increase in 2021 and 2022 compared to the record lows of last year, driven mainly by a boom in liquefied natural gas (LNG) exports and domestic consumption, according to the Energy Information Administration (EIA).

The EIA forecast 2021 Henry Hub spot prices to average $3.07/MMBtu this year in its June Short-Term Energy Outlook (STEO), an increase of $1.04 from the lows of 2020. The latest forecast for 2021 prices also comes in slightly higher than the $3.05 average Henry Hub price forecast last month.

EIA said the increase in U.S. gas demand this year is primarily the result of a 3.8 Bcf/d increase in exports. The agency expects combined pipeline and LNG exports to average 18.3 Bcf/d in 2021 and 18.4 Bcf/d in 2022, far above the current...