Cheaper Natural Gas Eases Summer Energy Pressure

Natural gas became less expensive this summer even as unusually hot weather lifted electricity needs. For June through August 2026, Henry Hub gas cost $2.93 for each million British thermal units, on average. That was 6% below the comparable stretch a year earlier, according to the U.S. Energy Information Administration.

More renewable electricity reduced the need for additional gas-fired power. Solar output added an estimated 19.4 billion kilowatt-hours versus the prior-year period, while wind contributed another 9.3 BkWh. Generation fueled by natural gas still grew by 7.5 BkWh. Meanwhile, plentiful production and inventories helped keep the supply picture steady. Dry gas output could reach an all-time high of 111.2 billion cubic feet daily in 2026.

Maintenance at liquefied natural gas facilities also restrained growth in demand from that market. Looking toward colder weather, the EIA expects stored working gas at October’s close to stand 5% above its five-year norm. For businesses, the combination of lower summer pricing and substantial supplies provides a more stable backdrop for estimating near-term utility expenses.