Appalachian Natural Gas Output Stays Low Despite Pipeline Constraint Removal

US natural gas production remained unusually low on Monday, even after a major pipeline constraint in the Appalachian Basin was lifted. The Lower 48 output hit 107.5 billion cubic feet per day, while Appalachian cash prices averaged near $1, signaling that producers were still curtailing output. The weak regional prices indicate continued producer curtailments, despite the removal of the pipeline constraint.

Power demand has retreated sharply, contributing to the low production levels. The combination of reduced demand and pipeline constraints has led to a significant drop in natural gas prices in the region. The $1 cash prices suggest that producers are likely cutting back on output to avoid selling at such low rates.