Natural gas prices expected to stay low through 2024

Natural gas sits in storage tanks at the Henry Gas Processing Plant, a refinery and storage facility operated by Chevron Corp. subsidiary Sabine Pipe Line LLC, in Erath, Louisiana, U.S., on Thursday, Aug. 26, 2010. Natural gas futures fell to an 11-month low after an Energy Department report today showed that U.S. stockpiles rose more than forecast last week. Henry Hub is the delivery point for New York Mercantile Exchange (NYMEX) natural gas futures contracts. Photographer: Derick E. Hingle/Bloomberg less Natural gas sits in storage tanks at the Henry Gas Processing Plant, a refinery and storage facility operated by Chevron Corp. subsidiary Sabine Pipe Line LLC, in Erath, Louisiana, U.S., on Thursday, Aug. 26, ... more Photo: Derick E. Hingle Photo: Derick E. Hingle Image 1 of / 1 Caption Close Natural gas prices expected to stay low through 2024 1 / 1 Back to Gallery

WASHINGTON - U.S. natural gas prices are expected to stay low over the next five years, as the possibility of recession looms over the global economy, research firm S&P Global Platts Analytics reported Monday.

Gas prices at Henry Hub are projected to average $2.66 per million Btu through 2024, a decline of 8 percent from last quarter's forecast. Natural gas prices averaged $3.17 per million Btu last year.

"This is in response to softening global market conditions, increased associated gas production and muted domestic demand-side gains," the report read.

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Were the global economy to go into recession next year, demand from U.S. power and industrial sectors would likely decline a combined 2 billion cubic feet a day - 2 percent of total U.S. demand - further drawing down prices, Platts said.

"A global economic recession remains a distinct possibility next year," the report said.