The US Energy Information Administration’s (EIA) latest Short-Term Energy Outlook shows promising news for the gas compression industry as natural gas spot prices continue to recover from 2020 lows.
In July 2021, the natural gas spot price at Henry Hub averaged US$3.84 per million British thermal units (MMBtu), which is up from the June average of US$3.26/MMBtu. The EIA expects the Henry Hub spot price will average US$3.71/MMBtu in 3Q21 and US$3.42/MMBtu for all of 2021, which is up from the 2020 average of US$2.03/MMBtu.
Higher natural gas prices this year primarily reflect two factors: growth in liquefied natural gas (LNG) exports and rising domestic natural gas consumption for sectors other than electric power.
In 2022, the EIA expects the Henry Hub price will average US$3.08/MMBtu amid rising US natural gas production.
