New pipelines will unleash massive supplies of natural gas penned in the Northeast, allowing Florida and other southeastern states to take advantage of the low-cost fuel.
Bloomberg reports that the pipelines and record production in the Marcellus Shale – 16.5 billion cubic feet a day in June – will slash regional price differences.
On Tuesday, gas at the U.S. benchmark Henry Hub in Louisiana sold for $1.62 more per thousand cubic feet than at the Leidy hub that serves the Marcellus, according to Bloomberg. The gap could narrow to as little as 30 cents, according to energy analysts.
Some of the new pipeline capacity could be online by the end of the year. More than 7.5 billion cubic feet of capacity per day is scheduled for service by the end of 2017. One billion cubic feet of gas can heat roughly 10,000 homes for a year.