Production in the Permian dipped midweek as maintenance on Permian Highway cut pipeline capacity out of the region. However, supply rebounded strongly over the weekend, pushing back above 21 Bcf/d. Waha prices stayed positive despite the maintenance, dipping with the worst of the flow restrictions but still staying above zero. According to data from Natural Gas Intelligence (NGI), Waha prices averaged $0.49/MMBtu during the four days of the outage. Outflows to the East fell during the maintenance window, while outflows to Mexico rose as seasonal power demand increased.
Featured Articles
- Analyst Insight
Permian Gas Production Recovers While Prices Gain
Permian gas production ticked higher last week as recent pipeline maintenance on Permian Highway wrapped up, allowing flows to normalize and prices to recover.
- Analyst Insight
Permian Gas Production Rebounds Too Soon?
Production of natural gas bounced back in the Permian last week, but a maintenance event this week may put the crunch on capacity.
- Analyst Insight
High Supply During Spring Maintenance Keeps Waha Natural Gas Prices in the Basement
Natural gas supply in the Permian Basin is significantly higher than last year, despite a dip this week. With high supply and maintenance on some pipelines, cash prices were below zero for most of the week.
