Shipper Contracts Begin to Expire for Some M-U NatGas Pipelines

There’s potential trouble brewing for pipeline companies that own and operate big interstate pipelines that flow Marcellus/Utica Shale molecules to other regions. (Trouble for gas pipelines in other regions, too.) Some of the contracts for the earliest pipelines built or repurposed to flow M-U molecules out of the northeast are expiring. The customers, in many cases, were the drillers themselves (instead of utility companies and other gas customers). Drillers are pulling back and not likely to renew those contracts, at least not at the prices they signed originally.

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