EIA Predicts Climb in Natural Gas Prices
Wednesday, February 13, 2013
The U.S. Energy Information Administration (EIA) said spot natural gas prices, which averaged US$2.75 per MMBtu last year, will average US$3.53 this year and US$3.84 next.
The prices were for the benchmark Henry Hub pipeline interconnection in Louisiana, where January trading averaged US$3.33.
The agency said a return to typical winter temperatures following last winter’s record warmth will help boost gas consumption to 70.3 Bcfd (1.99 x 109 m3) this year and 70 Bcfd (1.98 x 109 m3) in 2014. A 15% increase in population]weighted heating degree days is projected for 2013.
EIA said higher gas prices will reduce gas used for electric power generation from 25 Bcfd (708 x 106 m3) last year to 23.1 Bcfd (654 x 106 m3) this year and 22.6 Bcfd (640 x 106 m3) next year.
“Consumption over the forecast period remains high by historical standards and reflects an ongoing structural shift toward using more natural gas for power generation,” it said.
For more information: www.eia.gov