U.S. Northeast natural gas production has tumbled nearly 900 MMcf/d in the past month alone since EQT Corp., Cabot Oil & Gas, and others began curtailments in response to low gas prices, and is averaging nearly 2 Bcf/d below last November’s peak of 32.9 Bcf/d. But regional gas demand has lagged this year, storage inventories have surpassed five-year highs and outbound flows to the Gulf Coast are being challenged by reduced takeaway capacity and drastically lower demand from LNG export facilities. Today, we examine the net impact of these competing fundamental factors on the region’s supply-demand balance and the resulting implications for Appalachian supply prices.
The Waiting Game, Part 2 – Northeast Gas Production Cutbacks Tighten Regional Balance, For Now
