Navigant Releases New Data on North American Natural Gas Market Prices
Updated outlook for the North American natural gas market, including supply, demand, and prices at key market points.
According to the updated forecast, the real Henry Hub average price will
increase at an average rate of 2.9 percent, from
Navigant’s analysis found:
- U.S. natural gas demand will grow from 71.2 Bcfd in 2013 to 89.0 Bcfd by 2035, driven primarily by industrial growth in the near term, and electric generation growth over the longer term.
- The U.S. shale production outlook continues to be strong, growing from 28 Bcfd in 2013 to 56 Bcfd by 2035. In 2035, shale production is expected to represent 61 percent of total U.S. natural gas production.
LNG exports are expected to grow in the U.S. and
Canada, reaching 6.8 Bcfd by 2020.
”High rates of supply growth are still evident in the market, which is
somewhat surprising considering the relative flat growth in recent
baseload demand,” says
According to the Outlook, the market will see an increase in industrial
consumption of approximately 4.0 Bcfd over the next four to five years,
as well as more moderate demand growth in other sectors over the full
term of the forecast. In the near term, low natural gas prices will
continue to increase coal-to-gas switching in the electric generation
sector. In the mid-term, LNG exports will begin to come online as
supported by the Department of Energy’s recent second approval of a
non-Free Trade export application: Order #3282 Granting Long Term
Authorization to Export from the Freeport LNG facility on
For questions about North American Natural Gas Market Outlook and
analysis, please contact:
* The information contained in this press release reflects Navigant’s current expectations based on market data and trend analysis. Navigant’s market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the Outlook. Navigant undertakes no obligation to update any of the information contained in this press release or the Outlook.
Laverne Murach, 202.481.7336