Outflows of natural gas have been strong recently, and they stand to strengthen further as new capacity becomes available. Natural gas outflows from the Permian Basin were up last week, with lower outflows to the North, offset by higher outflows to the West, East and Mexico. Last week, outflows to the East averaged 13.2 Bcf/d, up 0.1 Bcf/d week-on-week, as seen in the orange line in the chart below. Outflows to the West averaged 2.6 Bcf/d, also up 0.1 Bcf/d week-on-week. Outflows to the North averaged 1.8 Bcf/d, down 0.1 Bcf/d week-on-week, with slightly lower flows on ONEOK, El Paso towards the Midcontinent and Northern Natural. Outflows to Mexico averaged 2 Bcf/d, up 0.1 Bcf/d week-on-week. Outflows to Mexico have been very strong this summer, flowing near the historic max for an extended period of time rather than only during the ultra-peak season, which typically happens in late summer. The price of natural gas in the Permian continues to strengthen, as Waha basis to Henry Hub narrowed to just minus $0.55/MMBtu last week, according to Bloomberg data. This is the narrowest basis has been since December 2024.
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Open The Door – New Pipeline Capacity Unlocks Supply Potential for Permian Natural Gas
Natural gas prices in the Permian spent the first half of the year in the red. Then, in mid-June, Kinder Morgan flipped a switch and now Waha prices are back above zero. The “switch” was a compression expansion on Gulf Coast Express, which added a desperately needed 570 MMcf/d of takeaway capacity.
Gulf Coast Express Expansion Ends Waha’s Negative Streak
Waha natural gas prices were positive again for the week that just ended. An expansion of the Gulf Coast Express pipeline provided a critical boost by raising outflow capacity.
Fly Like An Eagle – With New Permian Takeaway Capacity Coming Online, Gas Production Could Soar
For the first time in years, the Permian Basin’s chronic natural gas takeaway constraint is beginning to ease — and in a big way. Today, we discuss the major Permian gas pipeline projects scheduled to come online in 2026-27, how much new capacity they will provide, and consider what it all means.
