The Appalachian basin is likely to have ample pipeline takeaway capacity for the foreseeable future. With abundant spare pipeline capacity, we expect that Appalachian benchmarks will continue to show a narrowing of basis relative to Henry Hub. Appalachia’s “basis blowouts” seen in 2015 and 2016 are probably a thing of the past…at least for the next 4-5 years.
Appalachian Basis: Pipeline Capacity Likely Sufficient
September 22, 2020