When regional growth in natural gas production outpaces pipeline takeaway capacity, capacity constraints exert downward pressure on spot natural gas prices at the Waha hub near Permian Basin production. U.S. Energy Information Administration said Sept. 10 that prices at Waha have been below zero for 46 percent of trading days in 2024, including every day since July 26, according to data from Natural Gas Intelligence.
EIA added, “The takeaway capacity added when the Matterhorn pipeline enters service should allow producers to increase deliveries of natural gas out of the Permian Basin and help to increase the natural gas price at the Waha hub, making its price difference to the Henry hub less negative or even positive.”