EIA: NatGas 2025 Prices Up 56% on Winter Demand, Exports


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. natural gas spot prices surged by 56% last year, 
driven by winter demand and higher export capacity, the Energy Information 
Administration said in analysis Friday (1/9) that underscored the market's 
growth since its last peak in 2021.

   Benchmark Henry Hub spot gas averaged $3.52 per million British thermal 
units in 2025, compared to the inflation-adjusted average of $2.26 per mmBtu 
recorded during 2024.

   The jump represents the highest annual run-up in gas prices since 2021, when 
the market rebounded by 57% following the demand destruction caused by the 2020 
coronavirus outbreak.

   In 2025, increased liquefied natural gas exports and late-year polar vortex 
provided the structural support necessary to lift prices from the prior year.

   Despite the annual increase, record levels briefly pressured prices during 
the summer months of 2025, with spot Henry Hub reaching a low of $2.62 mmBtu in 
August.

   Domestic output expanded by an estimated 4.5 billion cubic feet per day to 
also meet global needs. EIA records show LNG exports surged by 25% to reach a 
record 14.9 billion cubic feet per day in 2025 as new liquefaction facilities 
expanded national export capacity to 15.4 Bcfd.

   A polar vortex between late November and early December pushed gas prices 
above the $5 mmBtu mark. The spike from the mid-summer price drop reflected the 
volatility in supply-demand following the comfortable surplus supply of the 
previous two years.

   Regional gas prices, however, saw stark divergences in 2025. Hubs near New 
York City and Boston saw surges that far outpaced the national benchmark due to 
persistent regional pipeline constraints.

   In contrast, the Northwest Sumas pricing point saw gas prices decline as 
ample Canadian supply met lower demand. Record production in Western Canada's 
Montney shale basin also anchored prices near the northern border.




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