Pipeline Takeaway Capacity in M-U Ramps Up This Winter – Prices Too?

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Source: RBN Energy - click for larger version
The experts at RBN Energy are back with another great article about pipelines in the Marcellus/Utica. This one takes a look at pipeline projects recently completed, and those that will get completed by March 2018. RBN says if you add them all together--the projects that were launched into service since last winter or will be online by the end of this winter, it amounts to a staggering 6.7 billion cubic feet per day of Marcellus/Utica gas flowing to other regions. Which regions? "Almost 3.0 Bcf/d of the incremental capacity versus last winter is designed to flow gas west from Ohio into the Midwest market; another 3.4 Bcf/d or so to the Gulf Coast via Ohio and the final 400 MMcf/d (from Atlantic Sunrise) to the Southeast via the Atlantic Coast." The overall point of the article: natural gas prices nationally are going nowhere fast. At least, they aren't going up any time soon. We are awash in new supplies of natural gas. Perhaps Marcellus/Utica prices will drift up a bit as the gas exits our region, but more likely prices in other regions will come down more than our prices will go up. That's the upshot. Here's the details...

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