In 2025, the natural gas market is forecast to see average prices of $3.25 per million cubic feet (mcf) for the NYMEX benchmark and CAD 2.75 per mcf for the AECO benchmark. These figures represent the anticipated average costs in their respective markets.
Natural Gas Price Forecasts for 2025
Natural gas prices are influenced by a multitude of factors, including supply and demand dynamics, weather patterns, economic growth, and geopolitical events. For 2025, market forecasts provide specific average price expectations for key trading hubs.
Here's a breakdown of the forecasted average natural gas prices:
| Market Benchmark | Forecasted Average Price (2025) | Unit |
|---|---|---|
| NYMEX | $3.25 | /mcf |
| AECO | CAD 2.75 | /mcf |
These forecasts are in line with prior expectations, reflecting anticipated market conditions through early 2025, followed by a potential recovery in prices.
Understanding Key Natural Gas Benchmarks
- NYMEX (New York Mercantile Exchange): This benchmark typically refers to the Henry Hub natural gas price, which is a major pricing point for natural gas in North America. Located in Erath, Louisiana, Henry Hub serves as the official delivery point for futures contracts traded on the NYMEX. Its price is widely regarded as a key indicator for the overall North American natural gas market.
- AECO (Alberta Energy Company): AECO is the primary natural gas trading hub in Western Canada, located in Alberta. Prices at AECO reflect the supply and demand conditions specific to the Western Canadian market and can differ from U.S. benchmarks due to regional production, storage, and pipeline infrastructure.
These average forecasts provide an outlook for natural gas costs in 2025, offering insights into expected market trends.
