The U.S. Energy Information Administration reported Wednesday natural gas prices in the Appalachian Region are increasing to meet the Henry Hub national benchmark price as more and more pipeline projects are completed.
EIA said 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.
While the average difference between natural gas prices at the Henry Hub and Appalachia have generally narrowed over the first 7 months of 2017 relative to the comparable year-ago period, the Appalachian region can become oversupplied at times when production exceeds pipeline capacity, driving producers in the region to lower their prices relative to Henry Hub.
As of July 31, the natural gas price at Dominion South in southeast Pennsylvania traded at $1.85/MMBtu, about $1.00/MMBtu lower than the natural gas price at Henry Hub.
Click Here to read the entire EIA report.
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