What will gas be in 2025?

The Energy Information Administration (EIA) released its August Short-Term Energy Outlook (STEO), providing insights into the expected natural gas prices for the upcoming quarters. According to the forecast, the Henry Hub spot price is projected to remain stable with a moderate increase throughout the mentioned periods.

In the second quarter of 2025, however, the EIA forecasts a slight decrease in the Henry Hub spot price, averaging $3.04 per MMBtu. This moderation may be a response to market adjustments or changes in supply and demand dynamics. Nonetheless, the overall trend remains positive.

Specifically, the EIA predicts that in the third quarter of 2024, the Henry Hub spot price will average at $2.20 per million British thermal units (MMBtu). This projection signals a steady start to the latter half of the year, indicating a potential stability in the natural gas market.

Moving forward to the fourth quarter of 2024, the EIA anticipates a slight uptick in prices, with the Henry Hub spot price averaging $2.78 per MMBtu. This increase may be attributed to various factors such as seasonal demand fluctuations and global energy market dynamics.

Looking into the new year, the EIA projects a further rise in the Henry Hub spot price. In the first quarter of 2025, the price is expected to average $3.23 per MMBtu, marking a continued upward trend. This prediction underscores the potential for a strong start to the year in terms of natural gas prices.