Appalachia Gas Prices Plummet with Cove Point Outage

Appalachian natural gas prices hit two-year lows as Cove Point LNG went offline for annual maintenance. The outage removed roughly 0.85 Bcf/d of feedgas demand from Appalachia, leading to low prices at six regional natural gas hubs. The Tetco M-2 spot price fell below $1.50TGP OFO, and mild weekend weather also contributed to the drop in production.

The Cove Point LNG outage began on Saturday, causing a significant reduction in feedgas demand from Appalachia. This decrease in demand led to lower prices at regional natural gas hubs. The low prices may affect producers who trim their output over the weekend.