Markets continue to shift, respond because of lucrative Marcellus
As companies continue to go all in and are benefiting from extracting gas from the Marcellus Shale, federal regulators have approved pipeline projects to get an additional nearly 1 billion cubic feet per day of gas to customers in the New York and New Jersey area, the Energy Information Administration said this week.
The Federal Energy Regulatory Commission on Oct. 17 approved starting service on two related projects, the EIA said.
Pipeline constraints in the New York area have led to price spikes when winter demand peaks, the administration said.
About the same time this month, the drum beat of firms touting or investing more in Marcellus Shale production has continued.
Marcellus gas is cited in Washington County-based Consol Energy Inc.'s decision to sell significant coal assets in a deal — self-described as transformative — valued at $3.5 billion, the firm said Monday.
The firm's statement specifically references West Virginia as a spot where it will focus development, and a report on TribLIVE.com cites sources who say hefty investments are also coming Pennsylvania's way.
Last week, Pittsburgh-based EQT Corp. reported third-quarter earnings that rose 177 percent, with Marcellus production up 74 percent compared with last year, the firm said.
And earlier this month, Houston-based Cabot Oil & Gas Corp. said it agreed to divest assets out West and redeploy those proceeds to the Marcellus Shale, where its production has grown to more than 1.2 billion cubic feet per day as of July.