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Northeast's Record Natural Gas Prices Due to Pipeline Dearth

A dearth of pipelines has the Northeast paying record prices

Temperatures in New York City hit 7F on Jan. 22, a day after the price to deliver natural gas into the city spiked to a record $123 per thousand cubic feet on the spot market. A hundred miles away in Pennsylvania’s Marcellus Shale, the biggest natural gas field in the U.S., the same amount of gas costs 35 times less.

A lack of pipelines is depriving consumers of the full benefits of low-cost energy. Although the wells in Pennsylvania are practically in the backyard of the Northeast and mid-Atlantic states, pipeline companies are still working to connect the gas fields to the utility pipes beneath towns and cities. Until they do, a lot of gas will continue to get pumped more than 1,000 miles from the Gulf Coast to the Northeast.