Marcellus Gas Prices Plunge Amid Regional Pipeline Egress Issues

The hot summer weather in August has led to a surge in natural gas prices across the country. In southwestern Pennsylvania, Marcellus gas trading for Thursday delivery went off at $1.520 per MMBtu, which is significantly lower than the $5.295 price in the desert Southwest on the same day. This disparity highlights the issue of pipeline egress problems in the region.

Landowners in the Marcellus area should be aware of spot price tables to understand the value of their gas production. The current prices demonstrate a significant difference between the two regions, with the Marcellus seller receiving only 29 cents on the dollar compared to the Southwest market.