Navigant Releases New Data on North American Natural Gas Market Prices

  Navigant Releases New Data on North American Natural Gas Market Prices

Updated outlook for the North American natural gas market, including supply,
demand, and prices at key market points.

Business Wire

SACRAMENTO, Calif. -- June 10, 2013

Navigant (NYSE: NCI) has issued its North American Natural Gas Market Outlook
(Outlook), Spring 2013, including updated forecast data on natural gas prices,
dry conventional gas and shale gas production, natural gas demand, and gas
storage activity.

According to the updated forecast, the real Henry Hub average price will
increase at an average rate of 2.9 percent, from $3.66/MMBtu in 2013, to
$4.07/MMbtu by 2015, and reach $6.82/MMBtu by 2035.

Navigant’s analysis found:

  *U.S. natural gas demand will grow from 71.2 Bcfd in 2013 to 89.0 Bcfd by
    2035, driven primarily by industrial growth in the near term, and electric
    generation growth over the longer term.
  *The U.S. shale production outlook continues to be strong, growing from 28
    Bcfd in 2013 to 56 Bcfd by 2035. In 2035, shale production is expected to
    represent 61 percent of total U.S. natural gas production.
  *LNG exports are expected to grow in the U.S. and Canada, reaching 6.8 Bcfd
    by 2020.

”High rates of supply growth are still evident in the market, which is
somewhat surprising considering the relative flat growth in recent baseload
demand,” says Gordon Pickering, a director with Navigant’s Energy Practice and
author of the Outlook. “Given this market, and relatively low prices, we
expect a near-term resurgence in demand led by the industrial sector, with
additional growth extending for the full term of the forecast.”

According to the Outlook, the market will see an increase in industrial
consumption of approximately 4.0 Bcfd over the next four to five years, as
well as more moderate demand growth in other sectors over the full term of the
forecast. In the near term, low natural gas prices will continue to increase
coal-to-gas switching in the electric generation sector. In the mid-term, LNG
exports will begin to come online as supported by the Department of Energy’s
recent second approval of a non-Free Trade export application: Order #3282
Granting Long Term Authorization to Export from the Freeport LNG facility on
Quintana Island, Texas. Over the long-term, gas demand will primarily be
driven by increases in electric generation influenced by stable prices and
energy policies that favors natural gas. Overall, the Outlook projects demand
increases and steady supply growth that will help to keep prices stable for
the duration of the forecast, providing for a healthier and less volatile
natural gas market than in years past.

For questions about North American Natural Gas Market Outlook and analysis,
please contact: Gordon Pickering at 916.631.3200 or

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated
to assisting clients in creating and protecting value in the face of critical
business risks and opportunities. Through senior level engagement with
clients, Navigant professionals combine technical expertise in Disputes and
Investigations, Economics, Financial Advisory and Management Consulting, with
business pragmatism in the highly regulated Construction, Energy, Financial
Services and Healthcare industries to support clients in addressing their most
critical business needs. More information about Navigant can be found at

* The information contained in this press release reflects Navigant’s current
expectations based on market data and trend analysis. Navigant’s market
predictions and expectations are inherently uncertain and actual results may
differ materially from those contained in this press release or the Outlook.
Navigant undertakes no obligation to update any of the information contained
in this press release or the Outlook.


Laverne Murach, 202.481.7336
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