NGI – As Waha Basis Grows, Existing Takeaway Not Fully Tapped, Says RBN

June 27, 2017 – Natural Gas Intelligence (NGI)

As Waha Basis Grows, Existing Takeaway Not Fully Tapped, Says RBN

By: Jeremiah Shelor

Natural gas takeaway from the Permian Basin's Waha Hub still has room to grow on existing pipelines, with "considerable upside" on potential exports across the border to Mexico, according to an analysis by RBN Energy LLC.

But as associated gas output from the oil wells in West Texas and southeastern New Mexico continues to climb, Waha will have to sell at a discount to compete during low-demand periods, and "constraints aren't too far off" when it comes to getting Permian gas out of the basin when demand is high, the consulting firm said.

Permian dry gas output has surged as drillers have flocked to the play in recent years to take advantage of its attractive crude oil economics, creating a major new source of production.

RBN estimates that over the last three years it has grown by close to 40% to average about 6.3 Bcf/d thus far in 2017. That number could double to nearly 12 Bcf/d in the next half decade, the firm said.

Read the full article here: http://www.naturalgasintel.com/articles/110924-as-waha-basis-grows-existing-takeaway-not-fully-tapped-says-rbn