What's keeping a lid on natural gas prices?

dan_s · Post by **dan_s** » Tue Apr 24, 2018 5:31 pm

Natural gas production in Pennsylvania topped 15 billion cubic feet per day (Bcf/d) in 2017, a 3 percent increase from the year before.

The Marcellus and Utica shales are driving rapid growth, and the inauguration of new pipelines is allowing growth to continue to grow. Two key pipelines – the Rover Pipeline (3.25 Bcf/d) and the NEXUS Gas Transmission Project (1.5 Bcf/d) – are expected to come online this year, adding more takeaway capacity, which will open up even more potential for upstream gas production.
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These new pipelines will not fill up immediately, but it is the FEAR of lots more production coming online that is keeping a lid on natural gas prices. The thing to keep in mind is that demand is also going up very fast. Lot's more industrial demand, primarily from petrochemical plants is coming online in 2018 and 2019.