Fall in US gas hub liquidity hampers derivatives market

Shale revolution undermines long-standing Platts indexes on US Gulf Coast

Gas pipeline

Natural gas trading hubs along the US Gulf Coast have suffered a plunge in liquidity in the last five years, according to data from New York-based price reporting agency Platts – a trend that is causing difficulties for derivatives contracts tied to prices at those locations.

Analysts say the root cause of the shift is the shale revolution, which has caused production to surge in the northeast US and reduced the importance of the Gulf Coast's decades-old natural gas infrastructure to producers,

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: