Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Natural gas prices are ready to rise: T. Boone Pickens

The Russian nat gas pipeline to Europe

Gas prices are set to rise, according to T. Boone Pickens, chairman and CEO of energy-focused investment firm BP Capital.

"Natural gas prices are going to move up," Pickens said Monday during a CNBC interview on the sidelines of the Milken Institute's Global Conference in Los Angeles.

The cost of gas will increase to more than $5 per one million BTU this summer, Picken predicted, up from a Nymex price of $4.83 now.

Pickens said prices are likely to increase because gas storage has been drawn down and needs to be filled back up.

Boone Pickens
Patrick T. Fallon | Bloomberg | Getty Images

Read MoreEven billionaires have to wait in line at Milken

Pickens surprisingly didn't give his views on future oil prices, a longtime speciality of his.

"Oil is tricky. I'm out of the oil market right now," Pickens said. He said he had exited the market because he thought it would go down.

Read More'Almost every asset is overvalued': Apollo pro