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 (
) is down 9 cents or 0.5%, to $19.01 per share today.
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