• Natural Gas News

    EIA sees gas strength through 2023

Summary

Natural gas production, prices and exports seen robust over the next two years.

by: Dale Lunan

Posted in:

Complimentary, Natural Gas & LNG News, Americas, Liquefied Natural Gas (LNG), Political, Ministries, News By Country, United States

EIA sees gas strength through 2023

The US Energy Information Administration (EIA) said in its latest Short-Term Energy Outlook (STEO) on January 11 that natural gas would show strength in production, prices and exports through 2023, continuing a trend it predicts for 2022.

Dry natural gas production, the STEO says, averaged 93.5bn ft3/day in 2021, up 2bn ft3/day from 2020, and is expected to increase to 96bn ft3/day for all of 2022 before rising again to 97.6bn ft3/day in 2023.

The benchmark natural gas price at Henry Hub averaged $3.91/mn Btu in 2021, peaking at $5.51/mn Btu in October before slipping in November and December as mild early-winter weather prevailed across much of the US. The EIA expects Henry Hub to average $3.82/mn Btu in Q1 2022, $3.79/mn Btu for all of this year and $3.63/mn Btu in 2023.

Supported by strong price expectations – domestically and on global LNG markets – the EIA expects that US LNG exports, which averaged 9.8bn ft3/day in 2021, will increase to 11.5bn ft3/day this year and 12.1bn ft3/day in 2023 as a steady stream of new liquefaction capacity in Texas and Louisiana comes on-line. LNG exports averaged 6.5bn ft3/day in 2020.