Energy Prospectus

US natural gas price forecasts

The EIA (U.S. Energy Information Administration) estimates that US natural gas prices could average $3.55 per MMBtu (million British thermal units) in 2017 and $3.73 per MMBtu in 2018. US natural gas prices averaged $2.51 per MMBtu in 2016 and $2.63 per MMBtu in 2015.

The World Bank forecast that US natural gas prices will average $3 per MMBtu in 2017 and $3.50 per MMBtu in 2018.

The International Monetary Fund forecast that US natural gas prices will average $3 per MMBtu in 2017, $3.10 per MMBtu in 2018, and $3.30 per MMBtu in 2019.

Henry Hub prices that I am using in my forecast / valuation models:

2017
Q1 = $3.25
Q2 = $3.00
Q3 = $3.25
Q4 = $3.50

2018 = $3.50

The numbers below do not include exports (pipeline or LNG) that are increasing by over 2.0 Bcf per day:

Per EIA:

US natural gas consumption averaged 75.1 Bcf per day in 2016 and 74.7 Bcf per day in 2015.

The EIA estimates that US natural gas consumption could average 75.4 Bcf per day in 2017 and 76.9 Bcf per day in 2018.