UBS expects natural gas prices to rise in 2026

According to UBS, US gas exports are expected to surge over the next 18 months, resulting in higher gas prices by the end of 2026. 

The latest Short-Term Energy Outlook (STEO) report provided by the Energy Information Administration (EIA) shows that US gas exports in April stood at 676.5 million cubic meters per day, with 266 million transported via pipeline and 410.5 million as liquified natural gas (LNG). 

The EIA estimates that pipeline exports will rise by 17.1% to 311.5 million cubic meters per day at the end of 2026. LNG exports are set to hit 510 million cubic meters per day, growing by 24.24%. In total, these figures are 145 million cubic meters per day, or 21.43%, more than April’s exports. 

UBS notes that gas prices are projected to rise next year following the increase in US exports. The company sees value in long-dated gas contracts, including those ending in the summer of 2026. 

Since April 24, the July 2026 US natural gas contract has climbed by $0.4 to $4.2 per million British thermal units (mmBtu). UBS forecasts the July contract to grow further to $4.50 per mmBtu.