Northeast Gas Poised to Surge on Pipeline Limits: Energy Markets
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Natural gas prices in the U.S. Northeast are poised to reach five-year seasonal highs this summer because increasing demand from power plants may be too much for pipelines to handle.
Regional costs may average $5 to $5.50 per million British thermal units, with the potential to jump to $7 to $8, Chris Kostas, senior power and gas analyst for Energy Security Analysis Inc., a market research and advisory company in Andover, Massachusetts, said in a May 1 interview. Average prices for summer delivery at Algonquin City Gates, which includes Boston, were less than $5 from 2009 to 2012 after jumping to more than $10 in 2008.