Too Much Gas, Too Little Pipe: M-U Spot Prices Slump Below $1

Here's a head-scratcher for you. The Henry Hub spot (physical, not futures) price, the national benchmark for natural gas down in Louisiana, closed yesterday at $3.155 per MMBtu (million British thermal units, roughly the same as 1 Mcf, or a thousand cubic feet). Up here in the Marcellus/Utica, the very same molecule of gas sold for 88.5 cents. That's not a typo. Our gas traded at a $2.27 discount to Henry Hub, fetching just 28 cents on the dollar. Why? The short answer is the same one we've given for 15 years: not enough pipelines.

---

To view this content, log into your member account. (Not a member? Join Today!)