Gentlemen, start your calculators. The EIA expects natural gas prices to remain low through October then begin to increase as space-heating demand picks up this winter and economic conditions improve. Further out, the EIA expects natgas prices to reach in 2010 an average that should make for some interesting comparisons to coal costs. Prices are expected to increase in 2010 but, even with a projected winter storage withdrawal greater than the five-year average, end-of-March inventories still will be the highest recorded since March of 1991, according to the government's energy prognosticator. Furthermore, lower breakeven costs for domestic production and growing global LNG supply should limit sustained price increases throughout the EIA's forecast period.
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