Data from the US Energy Information Administration (EIA) showed that natural gas prices in the Henry Hub in Louisiana was the lowest since 2016 at an average of $2.57/MMBtu in 2019, 60 cents/MMBtu lower than in 2018. The low natural gas prices in 2019 supported higher demand and increasing exports.
Natural gas use by residential and commercial consumers rose by 2% year-on-year in 2019, according to EIA’s estimates. Natural gas consumption by the electric generation sector also increased last year. Natural gas use in the power sector broke a new record high in July when a heatwave hit the Midwest and the Northeast. Power generation by natural gas-fired plants remained relatively high until August.
However, prices were relatively low during the summer in June through August. Prices averaged $2.33/MMBt in the Henry Hub during those months, the lowest summer prices since 1998. This low prices also lead to record-breaking power generation by natural gas-fired plants in the summer of 2019.
Increasing natural gas production in the US put pressure on prices last year. US dry natural gas production increased by 7.5 Bcfd in January through October 2019. US natural gas production broke a new record in 2018, rising by 10.0 Bcfd or 11% from 2017.
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Published on January 10, 2020 5:43 PM (GMT+8)Last Updated on January 17, 2020 2:13 AM (GMT+8)
