Natural Gas Poised to Save American Families and Businesses Big on Heating Costs This Winter

Natural gas is expected to be a more affordable heating option for American households and businesses this winter, according to the American Gas Association's Winter Heating Outlook. The report projects that natural gas customers will spend 14% less on space heating this winter compared to last year.

The affordability of natural gas is supported by strong production and storage levels. The U.S. Energy Information Administration estimates record dry natural gas production averaging 111.7 billion cubic feet per day in 2026, while natural gas storage is on track for its highest pre-winter level since 2016.

Natural gas remains a budget-friendly heating option compared to electricity and heating oil. According to the AGA's analysis, average November to March space heating expenditures are projected at approximately $497 for natural gas, compared with $794 for electricity after adjusting for climate and heating conditions. On an energy-equivalent basis, electricity is expected to cost around 4.2 times more than natural gas for space heating.

The outlook also points to efficiency improvements as a key reason households can get more from the natural gas they use. Energy-efficiency programs, better-insulated buildings, and more efficient appliances have contributed to declining winter natural gas consumption per customer, with average usage falling by approximately 1.5% annually since 2017.