Smaller Price Discounts in Appalachian Region, Natural Gas… EIA

August 16, 2017 by Jim Colburn Leave a Comment

“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.”

This is a most amazing chart of natural gas production in the Appalachian region:

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

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