Marcellus Natural Gas Price

Seneca Resources Co. LLC cut its drilling program to one rig in June and continues to curtail Appalachian spot market production as it has for most of its fiscal year because of low natural gas prices.

Seneca, National Fuel Gas Co.’s (NFG) upstream affiliate, curtailed 7.3 Bcf production during the fiscal third quarter (3Q2020) “due to sustained low Appalachian pricing. The shut-ins came on top of the 2.7 Bcf the company curtailed in the 2Q2020. 

NFG said last week it’s assuming New York Mercantile Exchange (Nymex) prices will average $1.85/MMBtu for the remainder of the fiscal year ending Sept. 30. Given the forward curve and Appalachian basis, NFG said Seneca would likely curtail this year’s remaining 6 Bcf of Pennsylvania production volumes that are exposed to the...