In its latest short-term energy outlook, the Energy Information Administration (EIA) said spot gas prices at the benchmark Henry Hub, Louisiana, trading point would average US$3.l4/MMBtu this year and US$3.90 in 2014, compared to US$4 in 2011 and US$2.75 last year.

EIA said gas production would continue to grow as shale fields come on stream, although the gas drilling rig count fell to 431 rotaries on Dec. 28, 2012, compared to 811 at the start of 2012.

It said domestic supplies continue to displace liquefied natural gas (LNG) and Canadian pipeline imports. LNG imports will remain less than 500 MMcfd in 2013 and 2014 because higher overseas prices have made the United States a market of last resort.

EIA said gas storage remained high after setting a record last November. On Dec. 28, working gas inventories were 3.5 Tcf (99 x 109 m3), which was 23 Bcf (651 x 106 m3) greater than a year earlier and 389 Bcf (1.1 x 10¹⁰ m³)more than the five-year average.