US natural gas inventories are expected to rise to their highest level since 2016 ahead of winter, supported by strong production and lower gas demand from liquefied natural gas (LNG) export terminals undergoing maintenance, the Energy Information Administration said on Tuesday.
The EIA expects US natural gas inventories to reach about 3,985 billion cubic feet (Bcf) in October, providing an ample buffer ahead of the winter heating season.
The agency expects Henry Hub natural gas prices to average $2.87 per million British thermal units (mmBtu) in the third quarter of 2026, down 50 cents from its previous forecast.
Higher production and maintenance at LNG export facilities are expected to weigh on domestic gas demand and prices.
US LNG exports are forecast to average 16.5 billion cubic feet per day (bcf/d) in the third quarter. The EIA slightly lowered its forecast because of maintenance at Freeport LNG, but expects US LNG exports to continue growing through 2027.
Natural gas production is also expected to remain strong, while demand from the power sector is set to increase as electricity consumption rises.
The EIA expects natural gas to account for about 40% of US electricity generation in 2026, while coal’s share is forecast to fall to 16%. Wind and solar are expected to account for 11% and 8%, respectively.
