U.S. natural gas prices rebound sharply in 2025

U.S. natural gas prices rebounded strongly in 2025, with the national benchmark Henry Hub spot price averaging $3.52 per million British thermal units (MMBtu), according to the U.S. Energy Information Administration (EIA). The annual average was up 56% from 2024, which—after adjusting for inflation—marked the lowest Henry Hub average on record.

On a daily basis, Henry Hub prices ranged from $2.65/MMBtu to $9.86/MMBtu during the year. While prices were higher overall, the EIA noted that the daily trading range was narrower than in 2024, reflecting more stable supply conditions even as demand strengthened.

Seasonal demand patterns again played a central role in shaping prices. Natural gas prices were generally higher during the winter months, when colder temperatures increased demand for space heating and boosted gas-fired power generation, which remains the dominant source of electricity generation in the United States. LNG exports also contributed to demand growth, rising by an estimated 3 Bcf/d in 2025 as new U.S. export capacity entered service.

Lower prices during the summer months were driven by record-high production and softer power-sector demand. U.S. natural gas production increased by an estimated 4.5 Bcf/d in 2025, helping keep prices under pressure during periods of lower electricity consumption. Prices strengthened late in the year, however, as a polar vortex event in late November and early December briefly pushed Henry Hub prices above $5.00/MMBtu.

Price increases were widespread across most major U.S. trading hubs in 2025, with one notable exception. In the Pacific Northwest, prices at the Northwest Sumas hub near the U.S.-Canada border declined by an average of $0.24/MMBtu. The EIA attributed the decrease to ample natural gas supplies from Canada combined with reduced demand for gas-fired power generation in the region. Natural gas production in Western Canada reached record levels last year, led by the Montney shale play in British Columbia and Alberta.

In contrast, the Northeast experienced some of the sharpest price increases in the country. Spot prices at Transco Zone 6 New York and Algonquin Citygate near Boston rose by significantly more than Henry Hub’s $1.33/MMBtu annual increase, according to data from Natural Gas Intelligence. Prices at Algonquin Citygate averaged $16.37/MMBtu in January and $14.00/MMBtu in February, the highest levels for those months since 2022, coinciding with periods of extreme cold and pipeline congestion.

The EIA said natural gas prices in the Northeast tend to be especially volatile during winter months, when rising demand collides with limited pipeline capacity. Supply constraints within the region’s pipeline network continue to amplify price spikes during cold weather events, underscoring the ongoing role of infrastructure limitations in regional gas markets.

Taken together, 2025 highlighted a shifting U.S. natural gas landscape, with higher average prices driven by LNG exports and winter demand, even as record production and regional supply dynamics continued to shape volatility across major trading hubs.