The Energy Department’s Energy Information Administration (EIA) said it expects U.S. natural gas spot prices to rise again in June and remain high through the rest of the year.
Natural gas spot prices at the Henry Hub benchmark in Louisiana averaged $8.14 per million British thermal units (MMBtu) in May. The hub price is expected to average $8.71/MMBtu through August.
EIA said that natural gas consumption by electric utilities has remained high even with the relatively high prices. It said that consumption for electric power generation will average 0.9 billion cubic feet per day (Bcf/d) more in 2022 than in 2021, even though Henry Hub prices are on track to be $3.49/MMBtu higher.
