Marcellus gas production backlog spurs pipes heading south as well as north Increasing natural gas production in the Appalachian Basin’s Marcellus Shale play continues to outpace the growth in the region’s pipeline takeaway capacity. This has led to supply backups in the Marcellus region, with new production often unable to flow to areas where gas is in high demand, placing downward pressure on prices in the region. It has also contributed to a number of natural gas wells in Marcellus remaining backlogged , with a February 28 report from Barclay’s estimating that more that 1,300 wells there are drilled but not completed. Natural gas prices at Leidy Hub in central Pennsylvania have continued to trade significantly below the Henry Hub national benchmark spot price. This winter, the Leidy spot price averaged $3.55 per million British thermal units (MMBtu), $1.08/MMBtu below Henry Hub, and lower than the average spot price […]