Natural gas pipeline projects lead to smaller price discounts in Appalachian region

U.S. Energy Information Administration -------- As new pipeline projects and expansions are completed, the difference between the Henry Hub national benchmark price and daily spot natural gas prices at pricing hubs in the Appalachian region has narrowed. Through the first seven months of 2017, the difference between prices at the Henry Hub in Louisiana and at Dominion South in southwestern Pennsylvania averaged $0.53 per million British thermal units (MMBtu), about two-thirds the average difference of $0.76/MMBtu during the first seven months of 2016. The differences between the Henry Hub and other Appalachian region price points followed similar trends. Appalachian regional prices are influenced by regional production rates and the availability of infrastructure to transport natural gas to demand centers. Production in Ohio, Pennsylvania, and West Virginia from the Marcellus and Utica shale plays has grown rapidly over the past several years, and infrastructure to deliver natural gas to consumers has not kept pace. To learn more click on the picture below to read the article.