Platts
Marcellus Demand May Lag Gas Supply For Several Years to Come, Officials Say

Friday, October 28, 2011

Despite plans to build several new pipelines to move gas and liquids out of the Marcellus and Utica shales in Appalachia, supply will likely exceed demand in the region for several years, industry officials and analysts said October 21 in Pittsburgh.

Gas demand in the Marcellus from a number of sources is expected to grow over the next several years, "but the rate at which it's been growing is not enough to keep up with increases in pipeline capacity and increases in production," Andrew Bradford, director of origination and business development for Platts unit Bentek Energy, said on the sidelines of the Platts Appalachian Gas Conference.

Bentek's conservative projection of production growth calls for Appalachian Basin output of 4 Bcf/d in 2014, up from about 2.2 Bcf/d in 2009. The consultancy's aggressive growth case shows basin production reaching more than 6 Bcf/d by 2014.

As for consumption, however, "the easy, low-hanging fruit on the demand side has been taken," Bradford said.

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