Appalachia prices increase as new takeaway capacity supports higher production
Natural gas prices at trading points around the Appalachia region have generally increased in the past three years relative to the benchmark Henry Hub in Louisiana, even as production in that area reached new highs. Natural gas production in the Appalachia region averaged 22 billion cubic feet per day (Bcf/d) in 2017, an increase of 25% from 2015 average levels. Latest data indicate that production has continued to increase, with production in the Marcellus and Utica plays reaching 25 Bcf/d in March 2018. Higher prices and production are mainly driven by the increased pipeline takeaway capacity from the Appalachia region.
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