Up to 8% of M-U Molecules Currently Restricted Due to Pipe Issues

We’ve recently begun to highlight flow restrictions along pipelines that carry Marcellus/Utica molecules. When flows slow or stop (because they can’t reach other markets), the price typically falls because local supply exceeds local demand. In the middle of Winter Storm Fern in January, outages and freeze-offs led to significant stress with production dropping 10-12% due to pipeline and well issues (see Flow Restrictions, Freeze-Offs Lead to 10-12% Drop in M-U). We checked this morning and, as is typical, there are some restrictions that suppress outbound flows by 5-8%. We have the list of which pipelines are currently affected.

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