Rising winter demand and growing LNG exports push national gas prices higher
As any consumer of natural gas knows, U.S. natural gas prices increased significantly in 2025, reflecting changing market conditions, weather patterns, and growing export activity.
EIA says the national benchmark Henry Hub spot price averaged $3.52 per million British thermal units (MMBtu) during the year. This marked a major rise compared to 2024, which recorded the lowest inflation-adjusted average on record.
Daily prices during 2025 moved between $2.65/MMBtu and $9.86/MMBtu. Although prices were volatile, the range was narrower than the previous year, showing improved market stability. As expected. natural gas prices were generally higher during winter months when colder temperatures increased demand for home heating and electricity generation.
A key factor behind rising prices was the growth in U.S. liquefied natural gas exports. LNG export demand increased by an estimated 3 billion cubic feet per day in 2025 as new export facilities became operational. This growth raised overall demand for natural gas and supported higher prices.
During the summer, prices remained relatively low. This was due to record high natural gas production, which increased by about 4.5 billion cubic feet per day. Lower electricity demand in warmer months also reduced gas consumption, keeping prices under control.
In the final months of the year, prices climbed again. A polar vortex event in late November and early December caused a temporary spike in heating demand, briefly pushing Henry Hub prices above $5.00/MMBtu.
Regional markets showed different price movements. Most major U.S. trading hubs recorded higher annual averages in 2025. However, Northwest Sumas near the U.S.-Canada border saw a slight decline in prices. This drop was caused by high natural gas supply from Canada and reduced demand for gas-fired electricity in the Pacific Northwest. Western Canada also reported record-high production, mainly from the Montney shale basin.
In contrast, Northeast markets experienced sharp price increases. Areas around New York City and Boston faced supply limits within pipeline networks during cold weather. Prices in New England surged early in the year, reaching the highest winter average since 2022. These regional differences highlight the strong impact of weather and infrastructure on U.S. natural gas markets.
Photo Credit: EAI-Natural-gas-daily-spot-price