Appalachian Producers Eye Curtailment Ahead of Fall Storage Build

Appalachian natural gas producers are bracing for potential curtailments this fall as regional storage inventories swell and forward prices slide. Regional storage has refilled rapidly, with prices hovering near $1.70 per MMBtu. This increase in flexibility gives producers more room to maneuver, but also increases the likelihood of curtailments.

At a Glance:

The trend of Appalachian producers curtailing production is not new, having occurred previously when storage inventories reached capacity and prices dropped. However, this year's situation may be different due to the region's increased storage capacity and flexibility.