U.S. Natural Gas Producers to Boost Production in 2025

Forex - U.S. natural gas producers are expected to boost production in 2025 following a series of production cuts this year, as increasing demand from liquefied natural gas export facilities is anticipated to lift prices that have dropped to their lowest levels in a decade. According to the latest outlook report from the U.S. Energy Information Administration (EIA), U.S. production is on track to decline in 2024 for the first time since the demand drop caused by the COVID pandemic in 2020. Producers began to cut gas output after average spot monthly prices at the U.S. Henry Hub benchmark fell to a 32-year low in March and have remained relatively low since then. Analysts forecast that rising export demand will increase average annual gas prices by more than 40% compared to the levels seen in 2024. The EIA projects that annual average dry gas production will decrease from a record 103.8 billion cubic feet per day (bcfd) in 2023 to 103.3 bcfd in 2024, but is expected to rise to 104.5 bcfd in 2025.