The U.S. natural gas market is expected to have a brighter future, according to UBS. Despite concerns about congestion in the market, UBS predicts that natural gas prices will rise to $3.50 per million British thermal units (MMBtu) by the end of 2021 [43e4898d].
UBS attributes the increase in natural gas prices to strong demand from the industrial sector and LNG exports. They believe that the congestion in the market will be temporary and will be resolved by new pipeline projects. Additionally, the retirement of coal-fired power plants is expected to drive increased demand from the power sector, further benefiting the natural gas market [43e4898d].
In addition to demand factors, UBS also expects natural gas production to increase in the coming years. This increase in production will help meet the growing demand and contribute to the overall positive outlook for the U.S. natural gas market [43e4898d].
These predictions from UBS provide a more optimistic view of the U.S. natural gas market, despite concerns about congestion. The expected rise in natural gas prices and the anticipated increase in production indicate a positive trend for the industry [43e4898d].
It is important to note that the UBS analysis focuses on the U.S. natural gas market and its specific dynamics. Other factors, such as global energy trends and geopolitical developments, may also impact the natural gas market and should be considered when assessing its future prospects [43e4898d].