According to economics the price of any commodity is determined by the demand and supply. Natural gas price, similarly, also depends entirely on its demand and supply. The price of natural gas is also predominantly determined by crude oil and petroleum product production and consumption across different countries. The following factors play a very important role in the demand of natural gas:

Weather: Consumption is high during summer season.
Demographics: Consumption also depends on the population growth or fall in a country.
Economic Growth: Economic growth is one of the key factors that determine any economy. A healthy economic growth is an indication of the prosperity of a country.

Fuel Competition: Supply and demand always competes with each other resulting in fuel competition.
Storage: when the storage levels go down the market immediately pushes the natural gas price up because the supply could reduce drastically.
Exports: exports play a very important role in the price of natural gas. Higher the volume of exports higher will be the price of natural gas.

The last 75 to 80 years are taken into account for the natural gas price. Since then off course the prices have drastically changed. These records show that consumers today are paying a lot more than the processing and distributing costs. Until the 1960s and the 1970s the United States was self-sufficient in supply of natural gas but due to over-consumption their resources are depleting at an alarming rate.

 

The year 2007 however saw a dip in the prices of natural gas. In the year 1985 the natural gas price in one particular city of America went drastically down because of abundant supply but just within 5 to 6 years the resources depleted and the prices went up again.

Other than the demand natural gas price also depends on supply.

Here are some important supply factors that contribute towards determining the price of natural gas:

The capacity of pipeline: Supply of natural gas depends on the capacity of the pipes that carry it from one place to another. Sending natural gas through pipelines makes transport and supply limited.
Drilling rate: The drilling rate of natural gas is indirectly related to its price. When the drilling of natural gas is controlled the supply will be less, consumption will go up as a result natural gas price will also rise to a great extent.
Nature: Nature does not have an abundant source of natural gas for mankind to consume. All natural resources will soon be exhausted due to over-consumption.
Technical problems: Sometimes the machinery and the equipment used to supply natural gas can malfunction and as a result the natural gas will not be supplied to its destination at the stipulated time.

and lastly...

Imports: Imports are a very important source of supply. Most of the countries that do not have enough sources of natural gas have to import from other countries that have an abundant supply of gas.