Natural gas producers in the Utica and Marcellus shale plays are working next to some of the biggest markets in North America. But lack of pipeline capacity means they don't have access to customers in New York and other large East Coast cities —or to the premium prices they would pay, particularly in cold weather — forcing them to sell their gas at a discount. According to Energy Intelligence's Gas Market Reconnaissance, spot natural gas prices in New York City were just $2.04 per million Btu last week, versus $3.84 at the Henry Hub trading point in Louisiana and $3.82/MMBtu at Katy, Texas.
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