US natgas prices slide 2% to two-month low on rising output, ample fuel in storage
UNG•Output and demand outlook
Financial group LSEG said average gas output in the U.S. Lower 48 states rose to 110.3 billion cubic feet per day (bcfd) so far in July from 110.0 bcfd in June, but remained below the monthly record high of 110.6 bcfd in December 2025.
Analysts noted that some of the output increase was likely from the first small gas flows on U.S. energy firm Energy Transfer's 2.2-bcfd Hugh Brinson gas pipe under construction in Texas. The first 1.5-bcfd phase of the pipe is not expected to enter full service until late 2026, with the 0.7-bcfd second phase in early 2027.
Meteorologists forecast the weather would remain mostly warmer than normal through July 31, forcing power generators to burn lots of gas to keep air conditioners humming. About 40% of U.S. power generation comes from gas-fired plants.
LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 111.3 bcfd this week to 110.7 bcfd next week. Those forecasts were similar to LSEG's outlook on Wednesday.
