Marcellus pipeline woes threaten to change entire US gas market game
Permitting issues have radically curtailed the access to cheaply produced gas to which the industry has grown accustomed
That the Marcellus shale and the wider Appalachian gas basin have a pipeline offtake problem is hardly news. But the implications of the US cutting itself off from gas resource that can be cheaply produced may still be being underestimated. Research firm Enverus forecasts Appalachian gas production rising by just 0.88bn ft³/d (24.92mn m³/d) year-on-year in 2023. “The limited growth from the Northeast is really a function of takeaway constraints, rather than resource issues or the economics of wells at sub-$4/mn Btu Henry Hub prices,” says the firm’s senior vice-president of intelligence, Steve Diederichs. “And we do not expect significant relief until the Mountain Valley Pipeline comes onlin
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth