The U.S. Energy Information Administration (EIA) said spot natural gas prices, which averaged US$2.75 per MMBtu last year, will average US$3.53 this year and US$3.84 next.

The prices were for the benchmark Henry Hub pipeline interconnection in Louisiana, where January trading averaged US$3.33.

The agency said a return to typical winter temperatures following last winter’s record warmth will help boost gas consumption to 70.3 Bcfd (1.99 x 10⁹ m³) this year and 70 Bcfd (1.98 x 10⁹ m³) in 2014. A 15% increase in population]weighted heating degree days is projected for 2013.

EIA said higher gas prices will reduce gas used for electric power generation from 25 Bcfd (708 x 10⁶ m³) last year to 23.1 Bcfd (654 x 10⁶ m³) this year and 22.6 Bcfd (640 x 10⁶ m³) next year.

“Consumption over the forecast period remains high by historical standards and reflects an ongoing structural shift toward using more natural gas for power generation,” it said.