Supply & Demand

Ample supply drags Transco Z6 price below $1/MMBtu

The Transco Z6 spot price dropped below $1/MMBtu last week as a result of ample supplies from shale plays such as the Marcellus and Utica, coupled with the region’s improving storage situation The Transco Z6 spot price dropped below $1/MMBtu last week as a result of ample supplies from shale plays such as the Marcellus and Utica, coupled with the region’s improving storage situation.
By Catriona Scott 8 July 2015 0 24743

The Transco Z6 spot price in New York closed at $0.87/MMBtu on 2 July – its lowest level on record and a sharp contrast to mid-February, when prices closed above $35/MMBtu. Improved supplies from shale plays such as the Marcellus and Utica are pushing prices downwards.

Gas production in the United States is rising, primarily driven by growth in the country’s shale plays. Dry gas production in the US (defined by the country’s Energy Information Administration as user-grade gas) increased by 9.3% year on year in...