COMMODITIES UPDATE: Natural Gas Prices Likely Will Keep Falling As Marcellus Production Expands, EIA Says

By Staff,

Shutterstock photo

Growth in natural gas production from the Marcellus shale formation in Pennsylvania, West Virginia, and Ohio is working to reduce spot prices at the benchmark Henry Hub in Erath, La., which should eventually lower natural gas prices for consumers in the Northeast, according to a new report issued today by the U.S. Energy Information Administration.

Natural gas prices in the Mid-Atlantic region traditionally have been more expensive than at the Henry Hub, reflecting the cost of moving natural gas from the production facilities along the Gulf Coat to consumers along the east coast, the EIA said.

Increased production from the Marcellus region began changing that relationship in 2011, it said.

Natural gas production in the Northeast has grown by about 3.2 billion cubic feet per day so far in 2013, a 30% increase from the same period last year.

Total natural gas production in this region reached 12.2 billion cubic feet per day in August, up 4.1 billion cubic feet over year-ago levels and a 2.5-billion cubic feet per day increase from the end of 2012.

The report did not give price projections.

Natural gas for November delivery (NGX13.NYM) was down 1 cent or 0.3% today, to $3.70 per million British thermal units. The 52-week price range is $3.28-$4.59.

The exchange traded fund United States Natural Gas ( UNG ) is down 9 cents or 0.5%, to $19.01 per share today.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: UNG

More from MT Newswires


MT Newswires

MT Newswires

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by