natural gas prices market watch november 2015

Month-ahead prices on TTF – Europe’s leading gas hub – averaged more than EUR 130/MWh in the first 11 months of 2022, more than 7 times as high as the average between 20. In the European Union, the supply shock from Russia’s invasion of Ukraine drove up natural gas prices on European hubs to record levels. Generation from gas plants also increased in Eurasia (up 3% compared to around 8% the previous year) and the Middle East (up more than 1% compared to around 4% the previous year). However, in the United States, gas-fired generation grew by around 7% in 2022, reversing a 3% decline in the previous year. For example, gas-fired output last year fell by around 35% in India and by more than 10% in China. Declines in some countries (such as China and India, among others) were largely offset by a rise in gas-fired generation in the United States, Eurasia and the Middle East. LNG export capacity.In 2022 gas-fired generation remained relatively unchanged compared to 2021, representing more than 20% of global electricity generation. LNG exports will surpass 13 Bcf/d by the end of 2024 and continue growing in 2025 as new export facility projects increase overall U.S. LNG exports will partially offset the reduced consumption. Domestic natural gas consumption will likely decline further, but rising U.S. We expect dry natural gas production to average more than 102 Bcf/d in 2024. In 2024, additional increases in dry natural gas production, which will outpace higher LNG exports and slightly lower domestic consumption than in 2023, will put downward pressure on natural gas prices. In the first quarter of 2024, we expect natural gas prices to increase, then drop below 2023 prices. LNG export facilities are planned to come online in 2023 without new facilities, U.S. We expect natural gas consumption to decline in the electric power sector as more renewable electric-generating capacity comes online and overall electricity consumption declines as a result of cooler summer weather than last year. natural gas production to increase by about 2% in 2023, averaging between 100 Bcf/d and 101 Bcf/d for the year. Dry natural gas production continuing to rise.LNG exports remaining flat once Freeport LNG comes back online Winter weather subsiding, reducing domestic consumption.We expect natural gas prices to decline in the second quarter of 2023, then stay relatively flat for the rest of the year as a result of: natural gas demand, which also contributes to higher first-quarter prices. Resuming export shipments from Freeport LNG will add approximately 2 billion cubic feet per day (Bcf/d) to overall U.S. We also expect the Freeport LNG export facility in South Texas, which shut down in June due to a fire, to resume operations in the first quarter of the year. After a warm start to January, we expect colder winter weather to return, prompting higher natural gas consumption for space heating in the residential and commercial sectors, which causes prices to rise.

We forecast the Henry Hub price will average close to $5.00/MMBtu in the first quarter of 2023 both winter weather and liquefied natural gas (LNG) exports at near-capacity volumes will lead to greater natural gas demand, which will result in higher prices in the United States. We expect prices to stay nearly the same in 2024 as dry natural gas production continues to grow in the United States and outpaces domestic natural gas demand and exports for most of the year. benchmark Henry Hub will average $4.90 per million British thermal units (MMBtu) in 2023, more than $1.50/MMBtu lower than the 2022 average. In our January Short-Term Energy Outlook (STEO), we forecast the natural gas spot price at the U.S. Energy Information Administration, Short-Term Energy Outlook (STEO)

Natural gas prices market watch november 2015