New England Prices Escalate vs. Nearby States in the Winter

New England Prices Escalate vs. Nearby States in the Winter
New England pays some of the highest electricity and natural gas prices in the U.S.—not because of its distance from supply, but because it’s effectively cut off from it.
Just a few hundred miles southwest is the Marcellus Shale, a massive and cost-effective gas basin. Yet instead of tapping this, New England often imports liquefied natural gas (LNG) from overseas—at global market prices.

Why New England’s Energy Prices Are So High
1. The Pipeline Problem
• Multiple pipeline expansion attempts have been canceled/delayed.
• Causes: environmental opposition, community resistance, and regulatory issues.
• Result: insufficient pipeline capacity during winter demand spikes.
2. LNG: A Global Commodity with Global Prices
• New England imports LNG, mostly via Everett, MA.
• Competes globally with Europe and Asia.
• Post-Ukraine war: Europe turned to LNG, spiking prices.
• Despite being near abundant gas, New England pays premium prices.
3. When Gas Runs Out, Oil Comes In
• In severe cold: fallback to oil-fired power plants.
• Oil is more polluting, more expensive, and ironic for a green-conscious region.
• Due to lack of pipelines and gas storage, no alternative during peaks.
Policy Gridlock & A Path Forward
• Federal push (e.g., Trump-era): revive pipelines like the Constitution Pipeline to access Marcellus gas.
• Massachusetts push: restrict gas expansion, move to geothermal and renewables.
• Result: stalemate — Washington wants more pipelines; Boston wants less gas.
A middle ground is needed:
• Strategic pipeline upgrades
• Cleaner dual-fuel options
• Better market design
• Regional collaboration
Until then, New England remains dependent on global markets for a local problem.