Appalachian Basin gas forwards prices drift lower despite tightening supply

摘要

Natural gas forwards prices in Appalachia are looking increasinglyundervalued recently as ongoing production weakness and lowinventory levels keep the Northeast market balance under pressure.At the region’s benchmark upstream hub, Eastern Gas South,second-quarter basis markets have drifted steadily lower in 2022,despite the emerging pressure on Northeast supply. As of mid-February, forwards prices for April, May and June 2022 are tradingnearly 80 cents behind the Henry Hub — down from a discount closerto 70 cents just two months ago, S&P Global Platts M2MS forwarddata shows.