Natural Gas Growth Concentrated in Marcellus and Utica Shale
Farm and Dairy reported: WASHINGTON — Natural gas supply and demand — increased supply from the Marcellus and Utica shalesand flat demand — will trigger lower natural gas prices over the next 24 months. The U.S. Energy Information Administration forecasts lower prices in 2018 and 2019 because of increased natural gas production and relatively flat consumption. EIA projects production growth to be concentrated in Appalachia’s Marcellus and Utica regions and in the Permian region, where oil production results in associated natural gas production. Greater pipeline connectivity reduces spot market discounts to Henry Hub, the main price benchmark for natural gas, and is expected to result in higher wellhead natural gas prices and production growth. The United States became a net exporter of natural gas on an annual basis for the first time in 2017, with net exports averaging 0.4 Bcf/d. This trend is expected to continue, with net natural gas exports forecast to average 2.3 Bcf/d in 2018 and 4.6 Bcf/d in 2019.
$150M Natural Gas Processing Plant Planned in North Dakota
BISMARCK, N.D. — A $150 million natural gas processing plant is planned in western North Dakota, bringing to four the number of projects proposed to capture more of the record volume of gas that is coming as a byproduct of the state’s oil production. New York-based Hess Midstream Partners LP and Houston-based Targa Resources Inc. announced the Little Missouri Four gas plant Thursday, two days after Republican Gov. Doug Burgum called for more gas-gathering and processing facilities to help control the amount of natural gas that’s being burned off at well sites and wasted. All of the projects are expected to come on line within the next two years and should keep pace with expected oil production until 2020.