EIA Sees Henry Hub Gas Prices Dip in 2026 Before LNG Demand Lifts 2027 Outlook

U.S. gas prices are set for a near-term dip before tightening market fundamentals reverse the trend. Federal forecasts point to LNG feed gas demand as the key driver reshaping the supply-demand balance later in the decade.

(Reuters) — The Energy Information Administration (EIA) projects that the U.S. benchmark natural gas spot price at Henry Hub will decline by about 2% to just under $3.50 per million British thermal units (MMBtu) this year, before gaining in 2027 to nearly $4.60 per MMBtu.

The EIA attributed the decline to annual supply growth keeping pace with demand throughout the year. However, it noted that next year, demand growth is expected to outpace supply, driven primarily by increased feed gas requirements from U.S. liquefied natural gas export facilities.

The agency expects natural gas supply growth to exceed demand growth by 0.5 billion cubic feet per day in 2026, but then lag behind by 1.6 billion cubic feet per day in 2027.