Key Moments
- The average Henry Hub natural gas spot price was US$3.52 per million Btu in 2025, according to LSEG Data via the EIA.
- This 2025 average was 56% higher than the 2024 inflation-adjusted annual average, which had been the lowest on record.
- Northeast hubs like Algonquin Citygate and Transco Zone 6 NY saw bigger price increases than Henry Hub, while Northwest Sumas prices fell.
Broad Recovery in US Gas Prices
In 2025, the Henry Hub benchmark in Louisiana averaged US$3.52 per million Btu. This is based on LSEG Data reported by the US Energy Information Administration (EIA). Overall, the market saw a clear recovery after record-low prices in 2024.
The 2025 annual average was up 56% from the prior year. Adjusted for inflation, the 2024 average had been the lowest on record. Daily prices ranged between US$2.65 and US$9.86 per million Btu, showing smaller daily swings than in 2024.
Seasonal Demand and LNG Exports
Natural gas prices usually rise in winter. Cold temperatures increase demand for heating. At the same time, gas-fired power generation also consumes more. Additionally, US LNG exports increased by about 3 billion ft³/d in 2025, supporting higher prices.
Summer prices remained lower. Production hit record highs, estimated at 4.5 billion ft³/d. Meanwhile, electric power consumption declined, keeping prices down during that period.
By late 2025, prices climbed again. A polar vortex in November and December pushed spot prices temporarily above US$5.00 per million Btu.
Regional Price Differences Across Hubs
Most major US gas hubs saw higher prices in 2025. One exception was Northwest Sumas near the US-Canada border. According to Natural Gas Intelligence, Northeast hubs like Algonquin Citygate near Boston and Transco Zone 6 NY serving New York City saw much larger gains than Henry Hub’s US$1.33 increase.
| Region / Hub | 2025 Price Trend | Key Drivers |
|---|---|---|
| Henry Hub (Louisiana) | Average US$3.52; up 56% | Higher winter demand, increased LNG exports, record production, polar vortex |
| Algonquin Citygate (New England) | Price rose more than Henry Hub’s US$1.33 | Colder weather, pipeline limits, winter volatility |
| Transco Zone 6 NY (New York) | Price rose more than Henry Hub’s US$1.33 | Colder conditions, pipeline congestion, higher demand |
| Northwest Sumas (US-Canada border) | Annual average dropped US$0.24 | High Canadian supply, lower gas-fired power demand |
Northwest Hub Softens Due to Strong Supply
At Northwest Sumas, the annual average fell by US$0.24 per million Btu. Ample natural gas from Canada and reduced demand for power generation contributed to this drop. Western Canadian production reached record levels, driven by the Montney shale basin in British Columbia and Alberta.
Northeast Prices Spike in Winter
In the Northeast, Transco Zone 6 NY and Algonquin Citygate saw sharp price spikes early in 2025. Cold weather and pipeline limits pushed prices higher.
Algonquin Citygate averaged US$16.37 in January and US$14.00 in February. These were the highest monthly levels since 2022. The spikes coincided with a polar vortex. Northeast prices are usually more volatile in winter because local demand strains pipelines and creates congestion.
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