All Americans will see their natural gas bills shoot up this winter thanks to higher market prices and cold snap, the EIA says
According to the EIA, US households that mainly use natural gas for heating are expected to pay an average of $931 on heating this winter.
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- Americans will see their natural gas bills soar this winter, according to the EIA.
- US households are expected to pay an average of $931 on heating, up 28% from a year ago.
- The forecast comes on higher retail natural gas prices and a colder-than-usual weather.
Americans are in for an expensive winter thanks to rising natural gas bills, the Energy Information Agency warned.
In a Monday report, the agency said US households that mainly use natural gas for heating will spend an average of $931 on heating this winter. That's 28% (or $206) more than last year.
The main driver behind the expected increase is higher retail natural gas prices. The EIA expects prices to rise 22% from a year ago to $15.95 per thousand cubic feet this winter, with the Midwest likely to feel the most pain.
"This winter, we expect colder temperatures and slightly more household consumption to contribute to higher natural gas bills compared with last winter," the agency said.
US natural gas prices have soared this year. While prices have fallen somewhat in recent months, that decline is expected to reverse, according to the EIA, with Henry Hub forecasted to rise 54% from last winter.
US natural gas prices have previously been estimated to spike as high as 60% this winter, according to Truist analyst Neal Dingmann, as inventory levels are near their lowest level in five years.
US natural gas supply has come under pressure after the nation lent a helping hand to Europe by exporting huge amounts of liquefied natural gas during its crippling energy crisis. It even rose to become the world's largest LNG exporter during the first half of 2022.
The EIA's report comes as the Biden administration braces for a tough midterm election cycle. President Joe Biden has been working to help ease soaring energy bills that have contributed to 40-year high inflation running through the US economy.