Marcellus Gas Fetches $1.59 While Florida Pays $3.96: Blame Pipes

Here's a number that should make every Marcellus/Utica landowner and driller wince: $1.590. That's what gas at the Tennessee Zone 4 Marcellus hub is fetching for October delivery, according to NGI's Forward Look. Meanwhile, down in Florida, the very same molecule (quite possibly gas that started life in a Pennsylvania or West Virginia well) is priced at $3.960 for October. That's a $2.37 gap, which means Florida buyers are paying 2.49 times what our local hubs get. The culprit? Not enough pipe heading south. And this week, one of the few big southbound pipes we do have, Mountaineer XPress, sprang a leak.

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