Marcellus Prices Improve with New Pipelines

Natural gas produced in the Marcellus region historically has had a hard time fetching prices anywhere close to the benchmark Henry Hub price in southern Louisiana. Why? Because we have so darned much of it! Too much. Not enough ways to get our gas to other markets where it would fetch a higher price. That’s beginning to change. The “differential” (the difference between HH and our prices) is starting to narrow. Marcellus prices are coming much closer to the prices HH gas gets. That’s because of new pipelines coming online to cart our gas to other markets. Our favorite government agency, the U.S. Energy Information Administration, wrote a post yesterday on their Today in Energy website pointing out the decreasing gap in prices between the Marcellus and HH…

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