The US Energy Information Administration (EIA) has announced that natural gas spot prices in 2016 averaged US$2.49/million Btu at Henry Hub. This is the lowest annual average price for natural gas since 1999.
The EIA notes that the average price fell below US$2/million Btu from February through to May 2016, although the price ended the year at an average of US$3.58/million Btu.
The main drivers of natural gas prices were said to be abover average temperatures throughout the year and changing natural gas demand.
Last year, natural gas surpassed coal as the primary fuel used for power generation in the US, notes the EIA. Natural gas accounted for an estimated 34% of the country’s electricity, compared with 30% for coal.
In November, the US became a net exporter of natural gas on a monthly basis for the first time since 1957, based on data from PointLogic.
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