Outbound natural gas flows from Appalachia over the weekend hit a new record high of 17.3 Bcf/d and averaged 16.7 Bcf/d for April — an all-time high for any month. That’s despite pipeline maintenance season being well underway last month and intermittently curtailing production and outflow capacity. Utilization rates of takeaway pipelines from the region are soaring above 90%, with little more than 1 Bcf/d of spare exit capacity for outflows of surplus Northeast production. Whether that will be enough to stave off severe constraints and discounted pricing in Appalachia in what’s left of the spring season, and again in the fall will depend on how much surplus gas is left after meeting in-region consumption and storage refill requirements. What happens when seasonal demand declines occur in May and June? In today’s blog, we wrap up our analysis of current outbound capacity utilization and where that leaves the Northeast gas market this spring.
Headed for Heartbreak, Part 6 – Prospects for Severe Springtime Gas Takeaway Constraints in Appalachia
