Henry Hub Natural Gas Prices Down 6% This Summer Amid Record Production
Natural gas prices at Henry Hub averaged $2.93 per million British thermal units from June through August this year, which is 6% lower than the same period last year.
This summer's exceptionally hot weather increased electricity demand for air conditioning, but natural gas-fired power plants helped meet that demand without putting upward pressure on prices.
The average temperature in the Lower 48 states was 77°F in July, a record high, according to the National Oceanic and Atmospheric Administration. Renewable electricity generation also played a role, with solar generation increasing by an estimated 19.4 billion kilowatthours (BkWh) and wind generation increasing by 9.3 BkWh compared to last year.
Natural gas supply has remained strong, limiting support for higher Henry Hub prices this year. U.S. natural gas production set numerous monthly record highs in 2026 so far, increasing the amount of natural gas available to meet domestic consumption and exports.