The Henry Hub natural gas spot price averaged $2.93 per million British thermal units from June through August 2026, 6 percent lower than the same period a year earlier, according to the U.S. Energy Information Administration.
Prices fell despite exceptionally hot weather that drove up electricity demand for air conditioning, a period when gas-fired power plants typically help meet higher load. The average temperature in the Lower 48 states reached 77 degrees Fahrenheit in July, the warmest ever recorded for that month, according to National Oceanic and Atmospheric Administration data.
The EIA credited three factors with limiting upward pressure on prices: increased renewable electricity generation, record natural gas production and ample gas inventories. Maintenance at liquefied natural gas terminals also moderated demand growth from that sector.
The agency estimated that additions in renewable capacity and generation reduced the volume of natural gas needed to meet higher summer electricity demand. Solar generation increased by an estimated 19.4 billion kilowatthours compared with the same period in 2025, while wind generation rose by 9.3 billion kilowatthours. Natural gas-fired generation increased by 7.5 billion kilowatthours.
On the supply side, US natural gas production has set numerous monthly record highs in 2026, increasing the volume of gas available to the market. The EIA cited its Short-Term Energy Outlook and Refinitiv Eikon data in the analysis.