Benchmark Henry Hub-Northeast Price Relationship Coming to End

摘要

July bidweek results last week highlight the breakdown in the price link between US benchmark Henry Hub and the Northeast citygates, as nearby Marcellus Shale output cruises past 15 billion cubic feet per day. The Transco zone 6 New York July premium to the Hub has been sliding steadily for years—from plus-45￠ in 2011, plus-25￠ in 2012, plus-16￠ in 2013 and finally to mi-nus-$1.05 in 2014 — and if s never likely to return to any semblance of "normal" even after new pipelines relieve constraints that alternately spike and trash regional prices depending on seasonal demand (NGW Jun.23'14).