EIA raises 2017 Henry Hub price estimate

The U.S. Energy Information Administration raised its forecast for Henry Hub natural gas spot prices this year due to new export capabilities and rising domestic consumption.

In its latest Short-Term Energy Outlook released on May 9, the agency said Henry Hub gas prices would average $3.17 per million British thermal units in 2017 and $3.43/MMBtu in 2018.

The 2017 estimate is up 7 cents while the forecast for 2018 is down 2 cents as compared to forecasts in EIA’s March short-term outlook.

In April, the average Henry Hub natural gas spot price was $3.10/MMBtu, 22 cents above the March level.

U.S. dry natural gas production is forecast to average 74.1 billion cubic feet per day (Bcf/d) in 2017, a 1.8 Bcf/d increase from the 2016 level, EIA said.

This increase reverses a 2016 production decline, which was the first annual decline since 2005.

EIA expects natural gas production in 2018 to be 3.2 Bcf/d more than the 2017 level.