U.S. Energy Information Administration said Henry Hub spot prices for natural gas averaged $7.72 per million BTU in January. That’s an increase of 81 percent from December because of “increased heating demand, reduced production and large inventory withdrawals as winter storm Fern blanketed a large portion of the U.S.” In its short-term energy outlook released Tuesday, EIA forecasts Henry Hub prices will average $4.31 per million BTU this year and $4.38 per million BTU in 2027. EIA said natural gas prices will “remain firmer through 2026 and 2027 reflecting tightening fundamentals, increased LNG export demand and higher seasonal volatility.”
Production of dry natural gas in the EIA forecast increases by 2 percent in 2026 and then by 1 percent in 2027. EIA said U.S. will produce 110 Bcfd of dry natural gas this year and more than 111 Bcfd next year. Production dropped 3 percent from December to January because of frigid weather conditions, but most of the production was back online in February.
EIA said, “During the second half of 2026 we expect production to ramp up as new pipeline capacity comes online in Permian and producers increase drilling activity in response to higher prices in 2026 first half.”