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EIA: Natural gas prices to improve in 2011

04/12/2010
By Marilyn Radler
Natural gas production will decline and prices will increase in 2011, the US Energy Information Administration said in its latest Short-Term Energy and Summer Fuels Outlook.EIA calls for the Henry Hub spot price to average $4.44/MMbtu in 2010 and $5.33/MMbtu in 2011.The Henry Hub spot price averaged $4.29/MMbtu in March, which was $1.03/MMbtu lower than the average spot price in February, and EIA expects prices to remain low for the next several months."With strong production and the absence of meaningful space-heating demand, lower-priced natural gas will once again compete with coal for a share of the baseload electricity supply—particularly in the spring and fall. Sustained ...
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