Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Permian Basin Natural Gas Prices up as a New Pipeline Nears Completion - EIA

Gasoil News - Published on Tue, 10 Sep 2019

Image Source: eia.gov
Natural gas spot prices at the Waha hub in western Texas, located near Permian Basin production, settled at USD 1.55 per million British thermal units on August 15, the highest price since March 2019. This price increase coincides with the 2 billion cubic feet per day Gulf Coast Express Pipeline preparing to enter service. GCX will provide much-needed additional natural gas takeaway pipeline capacity from the Permian region of western Texas and southeastern New Mexico. Limited natural gas pipeline takeaway capacity from the region has kept prices very low, or even negative, in recent months. During the first eight months of 2019, the Waha spot price averaged just 65 per million British thermal units . The Waha spot price has been consistently lower than the Henry Hub spot price, the national benchmark price for natural gas.

However, in recent days, that differential has significantly decreased, and Waha spot prices posted 59 per million British thermal units lower than the Henry Hub spot price last Thursday, which was the lowest daily differential since January. In comparison, this differential averaged between USD 2 per million British thermal units and USD 3 per MMBtu between March and June of this year.

Source :

Posted By : Rabi Wangkhem on Tue, 10 Sep 2019
Related News from Gasoil segment