EIA – Short-Term Energy Outlook, September 2024

The September 2024 Short-Term Energy Outlook from the EIA predicts a stable outlook for natural gas prices in the upcoming shoulder season, with a projected increase in 2025 due to lagging U.S. production compared to LNG exports. The Henry Hub spot price is expected to rise from under $2.00/MMBtu in August to around $3.10/MMBtu in the following year. Electricity generation is forecasted to increase by 3% compared to 2023, driven by solar power and natural gas. Solar generation is experiencing significant growth, with new capacity expansions and battery storage development. Solar accounted for 59% of new generating capacity additions in the first half of 2024, with Texas and California expected to see the largest gains in solar generation in 2024.