GAZB - Marcellus Utica gas producers cut output as prices demand drop

Appalachian Basin gas production is down sharply this month as many operators reduce output in response to record price volatility, weaker demand and elevated storage levels, S&P Global Platts reports.Aggregate production from the Marcellus and Utica shales has averaged just 31.4 Bcf/d so far in October, ~500 MMcf/day below the prior-month average, according to the report.Cash prices at the region's key upstream hubs reportedly sank to historic lows today, coming under pressure from a selloff at the Henry Hub benchmark.At NiSource's (NI) Columbia Gas Appalachia, spot prices were down by nearly 55% from the Oct. 7 settlement to a record-low $0.605/MMBtu, and at Dominion South (D), cash prices were off by 40%-plus to ~$0.66/MMBtu, S&P Global Platts says.Price volatility has caused some producers to trim output this season: Cabot Oil & Gas (COG) said yesterday that it had begun strategically curtailing some 370 MMcf/day of its Appalachian production, joining [[EQT]] -

For further details see:

Marcellus, Utica gas producers cut output as prices, demand drop