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Bank sees slowdown from Marcellus shale

Nov. 30, 2012 at 7:09 AM   |   Comments

HOUSTON, Nov. 30 (UPI) -- An investment bank reports that a lack of pipeline infrastructure tied to the Marcellus shale play in the United States could slow natural gas production.

The Platts news service cites a report from investment bank FBR Capital Markets that states production in the Marcellus shale play will decline from 2.3 billion cubic feet per day to 1.3 billion cfd because of the lack of export capacity.

The bank said new infrastructure tied to the northern part of the shale play isn't expected until at least the fourth quarter of next year.

Last week, the U.S. Energy Department's Energy Information Agency reported that year-on-year figures for October 2012 indicate rig activity in the play, spread out of the Appalachian Basin, has doubled.

The EIA said despite the rig count decline in the Marcellus play, natural gas production increased 72 percent in October compared to the same time last year.

In October, the Pennsylvania Department of Environmental Protection gave its approval for an air-quality plan issued by Moxie Liberty. The permit paves the way for construction of the first plant in the state to run on natural gas produced in the state's Marcellus shale play.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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