New pipelines help Marcellus gas prices
Natural gas from the Marcellus and Utica Shale formations in Pennsylvania, West Virginia and Ohio is trading at less of a discount to national prices after new pipeline projects have come online, the U.S. Energy Information Administration reported Wednesday.
Natural gas from the Marcellus and Utica Shale formations in Pennsylvania, West Virginia and Ohio is trading at less of a discount to national prices after new pipeline projects have come online, the U.S. Energy Information Administration reported Wednesday.
While Marcellus natural gas prices are still low compared to national benchmarks, the gap has narrowed this winter, according to EIA. Last July, the price at the Leidy Hub in central Pennsylvania, measured in thousand-cubic feet units, averaged $1.65 below the benchmark Louisiana price. In December and January, the gap had shrunk to 93 cents.
With limited infrastructure to deliver natural gas to consumers, EIA noted the Marcellus region can quickly become oversupplied, causing prices to be discounted. Several pipeline expansion projects have provided new outlets for the gas to get to market.
Several large proposed pipeline projects to transport gas to New England, New Jersey and Mid-Atlantic states that are currently undergoing permitting have become the focus of shale-gas opponents.
215-854-2947 @maykuth