Basis prices at Eastern Gas South fall as Appalachian production increases
Monday, April 25, 2022
As gas production in the Marcellus and Utica shale fields increases, peak-summer basis prices at Appalachia’s benchmark hub, Eastern Gas South, have fallen to an eight-week low in recent trading, according to S&P Global Commodity Insights.
Prices for June, July and August 2022 are trading at roughly $1/MMBtu less than the Henry Hub, which is currently hitting historic highs over $8/MMBtu.
Operators across the Appalachian Basindrilled an estimated 89 new wells in March, setting a pandemic-era high. However, well completions remained unchanged at 95.
Furthermore, the drilling rig count across the Marcellus and Utica shales edged up to 53 during the week ended April 20 — just two rigs shy of a 30-month high recorded in March.
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