Natgas prices at Waha hub in Texas fall to record low in negative territory (updated)

EnLink Midstream LLC

30/08/2024 13:19

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    By Scott DiSavino
       Aug 30 (Reuters) - Natural gas prices in the Permian
shale basin in West Texas have turned negative a record number
of times in 2024, including an all-time low for Friday, as
pipeline and other constraints trap gas in the nation's biggest
oil-producing basin.
    Spot gas prices for Friday at the Waha hub  NG-WAH-WTX-SNL 
in West Texas fell by about 120% to a record low of minus $4.80
per million British thermal units (mmBtu).
    That was the 21st time Waha prices averaged below zero in
August and was lower than the prior record low of minus $4.76 on
Aug. 9.
    Waha prices first averaged below zero in 2019. It happened
17 times in 2019, six times in 2020 and once in 2023. So far in
2024, Waha prices have averaged below zero 32 times.
    Analysts have said that is a sure sign the region needs more
gas pipes, which prompted a coalition of energy firms including
privately-held WhiteWater to move forward in July with the
Blackcomb pipeline.
    Other energy firms, including Kinder Morgan  KMI.N  and
Energy Transfer  ET.N , have also proposed new projects.
    There is, however, only one big gas project under
construction in Texas that could relieve the severe pipeline
constraints in the Permian region this year, the Matterhorn
Express Pipeline.
    In the past, Matterhorn Express projected the 490-mile
(789-kilometer) pipe capable of moving up to 2.5 billion cubic
feet per day (bcfd) of gas from the Permian to the Gulf Coast,
could enter service in the third quarter of 2024, but most
analysts now expect the project to start in the fourth quarter.
    Matterhorn Express is a joint venture between units of
WhiteWater, EnLink Midstream  ENLC.N , Devon Energy  DVN.N  and
MPLX  MPLX.N , according to WhiteWater's website.

 (Reporting by Scott DiSavino; editing by Jason Neely, Kirsten
Donovan)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))