Associations expect natural-gas prices to remain stable this winter

Pressures on natural-gas prices are likely to remain stable in the upcoming winter heating season, according to reports from two trade associations this week.

An overall rise in natural-gas demand will likely be offset by a supply increase, resulting in steady prices through the winter months, the Natural Gas Supply Association said in a report.

The report — the association’s annual outlook on winter natural gas prices — notes that demand is projected to increase by 2.4 percent this winter, primarily as a result of growth in the industrial and electric utility sectors.

This rise in demand likely will be offset by domestic natural-gas production, expected to approach its highest levels in decades due to a rise in onshore drilling and activity in areas like Pennsylvania’s Marcellus Shale.

Increased production, combined with robust storage capacities, will likely be more than enough to meet any increase in demand, said Jenny Fordham, vice president of markets for the Natural Gas Supply Association.

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