Key facts
- Henry Hub natural gas averaged $2.93 per million British thermal units from June through August.
- This average is 6% below the same period last year.
- July was the hottest on record for the Lower 48 states.
- Solar generation increased by an estimated 19.4 billion kilowatt-hours from June through August.
- Wind generation added another 9.3 BkWh during the same period.
- Natural gas-fired generation increased by 7.5 BkWh.
Record heat in the U.S. during July failed to boost natural gas prices above last summer's average, as robust production, strong storage injections, and significant increases in solar and wind power generation kept the market well-supplied. Henry Hub natural gas averaged $2.93 per million British thermal units from June through August, down 6% from the same period last year, according to data from NOAA and the Energy Information Administration (EIA).
Despite average temperatures reaching 77°F in the Lower 48 states, leading to higher electricity demand, solar and wind power generation absorbed a substantial portion of this increase. Solar generation rose by an estimated 19.4 billion kilowatt-hours and wind generation by 9.3 BkWh between June and August, compared to the prior year. This growth in renewables nearly quadrupled the 7.5 BkWh increase seen in natural gas-fired power generation.
U.S. dry natural gas production also saw a 2% increase, averaging 2.7 billion cubic feet per day more from June through August, with the Permian Basin contributing significantly to this growth. The EIA projects dry gas production to reach a record 111.2 Bcf/d for 2026. Storage levels were also favorable, entering the injection season with 1.906 trillion cubic feet of working gas, 4% above the five-year average, with most months seeing injections exceed this average. Additionally, maintenance at U.S. LNG terminals moderated export demand, leaving more gas available domestically. The EIA anticipates Lower 48 working gas inventories to reach 3.985 trillion cubic feet by the end of October, approximately 5% above the five-year average.