Press Release

Navigant Releases New Outlook on North American Natural Gas Market Prices

December 19, 2013 at 8:00 AM EST

Updated outlook for the North American natural gas market, including supply, demand and prices at key market points

SACRAMENTO, Calif.--(BUSINESS WIRE)--Dec. 19, 2013-- Navigant’s (NYSE: NCI) Energy practice has issued its North American Natural Gas Market Outlook, Fall 2013 (Outlook), including updated forecast data on natural gas prices, dry conventional gas and shale gas production, natural gas demand and gas storage activity.

According to the updated forecast, the real Henry Hub average price is expected to return to above $5/MMBtu after 2020 and reach $6.93/MMBtu by 20351.

Navigant’s analysis projects:

  • North American consumer natural gas demand is expected to increase from 77.8 Bcfd in 2013 to 108.7 Bcfd in 2035.
  • North American dry natural gas production is expected to grow by 44 percent from 87.3 Bcfd in 2013 to 124.5 Bcfd in 2035.
  • LNG exports are expected to grow in North America, reaching up to 7.8 Bcfd by 2022. 

“Five years after the first significant effects of gas shale in the U.S., the North American market is still being driven by fundamental gas supply and production growth,” says Gordon Pickering, a director with Navigant’s Energy Practice and author of the Outlook. “Looking forward, the market is expected to be largely influenced by abundant, even surplus supply in the short- and mid-term, then evolve over the longer term into a market that is fully connected to the global natural gas market. The global connection will result from both the rapidly developing North American natural gas liquefaction sector and natural gas exports to anxiously waiting markets, particularly in Europe and in Asia.”

According to the Outlook, total North American natural gas consumption for gas-fired generation and industrial use are projected to grow at an average annual rate of 3.7 percent and 2.4 percent respectively through 2020. In the near term, North American natural gas prices are projected to recover from 2012 lows, but will stay at moderate price levels. In the mid-term, Henry Hub prices are expected to rise to more than $5/MMBtu as a result of a combination of factors including increased gas-fired power generation, higher natural gas consumption for industrial use and a number of LNG export projects coming online. Over the long-term, natural gas prices are projected to continue the upward trend, albeit at a slower rate. Overall, the Outlook projects natural gas prices in North America will stabilize, demonstrating less volatility over the long-term, and helping to support a healthier market environment for both producers and end consumers.

For questions about North American Natural Gas Market Outlook and analysis, please contact: Gordon Pickering at 916.631.3200 or

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at

* The information contained in North American Natural Gas Market Outlook, Fall 2013 and this press release reflect 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. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used by Navigant to create the report. Navigant undertakes no obligation to update any of the information contained in this press release or the Outlook.

1 All prices in this article are reported in real 2012 U.S. dollars.

Source: Navigant

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