Completed Maintenance on Transco Pipe Leads to Lower Gas Prices

While there are a number of interstate pipelines that crisscross the Marcellus/Utica, there is one pipeline system that is key to moving molecules out of our region to other markets, particularly in the southeast and the Gulf Coast: Transcontinental Gas Pipeline LLC (Transco), owned by Williams. Transco stretches from the Gulf Coast to New York City and was originally designed to flow gas produced in the Gulf northward. A number of years ago, Williams reversed the flow on Transco, and most of the time, it now flows M-U molecules southward to Maryland, North Carolina, South Carolina, Georgia, Alabama, and beyond. When sections of Transco undergo maintenance, flows are reduced, driving down spot prices for natgas sold by drillers to the pipeline but raising the price paid by customers on the other end of the pipeline. And when maintenance is done and flows return, it reverses.

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