Locator: 48070NG.
Tag: pipeline.
SPGlobal, July 3, 2024: Appalachian Basin gas production hits four-month high as MVP flows rise.
Drilling down deeper, it appears that much of the recent gas production increase is coming from the Marcellus shale of West Virginia, located in the https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/natural-gas/070324-appalachian-basin-gas-production-hits-four-month-high-as-mvp-flows-rise. In July, Marcellus production from West Virginia has averaged nearly 9 Bcf/d, up from about 8.5 Bcf/d during the final week of June.
Recent production gains in Appalachia also come after EQT CEO Toby Rice in mid-June acknowledged publicly that the company had started bringing earlier-deferred production back online – a process that he said would be incremental.
Earlier this year, EQT announced one of the single largest gas production cuts by a US operator, saying it would reduce gross output by 1 Bcf/d in response to low prices. At the time, executives said the curtailment, which started in late February, would lower annual production by at least 30-40 Bcf.
EQT's announcement came just two weeks after Chesapeake Energy announced its own cut of a similar magnitude with a commitment to reduce 2024 output by 15% and lower capital spending by 20%.
Earlier commitments to cut gas production by EQT, Chesapeake and others came largely in response to low gas prices, which were hovering in the mid-$1 area at the time. In early May, though, gas prices rallied back above $2 and kept rising, ultimately topping $3 amid bullish momentum fueled by tighter market fundamentals. Now, with prompt futures prices still hovering in the mid-$2s, it seems likely that production in Appalachia, and elsewhere, could continue rising.
Mountain Valley Pipeline, wiki.
Permits first applied for: October, 2015. Would planning have started ten years earlier?
Biden got 'er done.
Wiki page needs to be updated: says the "project developer expects the pipeline to be in-service by mid-year 2024."
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