Natural Gas Prices Rise on LNG Demand and Hotter Weather Forecasts

Natural gas prices have risen by 1.02% to settle at 268.1, driven by increasing demand for liquefied natural gas (LNG) exports and forecasts of hotter weather. According to Kedia Advisory, daily LNG feedgas demand is expected to rise to 17.4 billion cubic feet per day.

Despite strong production levels, with an average of 111.1 billion cubic feet per day in August, natural gas inventories have remained above the five-year average since March. Storage levels are projected to remain around 6.6% above normal for the week ended August 7.

The U.S. Energy Information Administration (EIA) expects both U.S. natural gas supply and demand to reach record levels in 2026, with dry gas production forecast at 111.2 billion cubic feet per day and domestic consumption projected at 92.0 billion cubic feet per day.