Natural Gas News – June 12, 2018

Natural Gas News – June 12, 2018

Gap Seen Widening Between US Northeast Gas Pipeline Capacity, Production

Platts reported: Natural gas pipeline takeaway capacity additions in the US Northeast production area have yet to spur the level of further output the market was expecting, making it difficult to fill the infrastructure during certain periods, according to S&P Global Platts Analytics. The perspective, offered during the first day of the LDC Gas Forum Northeast conference in Boston, comes as industry leaders analyze Appalachian Basin supply, demand and pricing fundamentals heading into the next decade. At issue is whether easing pipeline constraints are only temporary and the extent to which LNG export growth will encourage Marcellus and Utica shale producers to drill more. “New production is not there to fill these projects, and this is only going to get worse,” Luke Jackson, a Platts Analytics senior energy analyst, told attendees at the conference. “On the surface, you’d say the Northeast is evolving. I would argue, ‘Not so fast.'” For more on this story visit platts.com or click https://bit.ly/2Mj8j7q

Appalachian Producers Finding Alternate Markets for Natural Gas Liquids

Platts reported: Given the continued closure of the Energy Transfer Partners Mariner East 1 natural gas liquids pipeline by Pennsylvania officials, Appalachian gas producers who hold capacity on the line are finding alternatives to get their ethane and other NGLs to market. But exploration-and-production companies and market observers have expressed concern that continued closure of Mariner East 1 — part of a system of pipelines to carry NGLs from plants in western Pennsylvania, Ohio and West Virginia to the export terminal at Marcus Hook, Pennsylvania — could slow the growth of gas production in the region. In a notice to investors, Range Resources said it has “already executed agreements for some of the Mariner East ethane volume to be sold in alternate markets.” For more on this story visit platts.com or click https://bit.ly/2HHEcTQ

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The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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