U.S. Energy Information Administration (EIA) said on Thursday it expects the price of natural gas in the United States in 2018 and 2019 will be slightly lower than 2017.
EIA made such expectation based on the forecasts in the latest Short-Term Energy Outlook. It expects the Henry Hub natural gas spot price to average 2.88 U.S. dollars per million British thermal units (MMBtu) in 2018 and 2.92 dollars per MMBtu in 2019, slightly lower than the 2017 average of 2.99 dollars per MMBtu.
Lower prices in 2018 and 2019 reflect EIA's expectation of increased natural gas production and relatively flat consumption.
EIA also expects natural gas consumption will increase slightly in both 2018 and 2019. On an annual basis, EIA expects combined residential and commercial natural gas consumption to increase by 1.3 billion cubic feet per day in 2018 because of colder weather closer to the recent historical average after a very warm early 2017, then remain nearly the same in 2019.
EIA forecasts dry natural gas production to increase in both 2018 and 2019, exceeding domestic consumption of natural gas for the first time since 1966.
The United States became a net exporter of natural gas on an annual basis for the first time in 2017 and this trend is expected to continue, said EIA.
Editor:Amber
