Renewables, Record Production Keep Lid on Natural Gas Prices

Dow Jones09-25 23:56

1156 ET - Benchmark U.S. natural gas prices were 6% lower this summer than in 2025 despite unusually hot weather that drove up air-conditioning demand, the EIA says in a note. Henry Hub prices averaged $2.93/mmBtu from June through August. "Increased renewable electricity generation, record natural gas production, and ample natural gas inventories helped limit upward pressure on prices," the agency says, while maintenance at LNG terminals curbed demand growth. Natural gas-fired electricity generation increased by 7.5 billion kilowatt hours from the same period in 2025, while solar grew by 19.4 billion kWh and wind power by 9.3 billion kWh. "We estimate that additions in renewable capacity and generation reduced the amount of natural gas needed to meet higher summer electricity demand," the EIA adds.

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