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    US Gas Prices Lowest in Decades in 2020: EIA

Summary

Covid-19 dragged demand, production lower for much of the year

by: Dale Lunan

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US Gas Prices Lowest in Decades in 2020: EIA

Natural gas prices at the benchmark Henry Hub in Louisiana averaged just $2.05/mn BTU in 2020, the US Energy Information Administration (EIA) said January 7, the lowest in decades.

Weather-related weakness as the year opened persisted as economic impacts of the Covid-19 pandemic reduced both production and consumption starting in March. In June, Henry Hub averaged just $1.63/mn Btu, the lowest monthly average since at least 1997, according to data on the EIA website.

There was some recovery in the second half of the year – Henry Hub averaged reached a 2020 peak of $2.61/mn Btu in November – as domestic production remained low but LNG exports strengthened.

Dry natural gas production averaged 90.9bn ft3/d during the year, about 2.2bn ft3/d less than in 2019, after reaching a record monthly high of 97bn ft3/d in December 2019 and reversing a three-year trend of consistent growth.