Permian natural gas production ranged from 21.7 Bcf/d to 22.2 Bcf/d during the week ended August 25, averaging 22 Bcf/d, up 0.2 Bcf/d from the week prior. Production increases were reflected in higher receipts on El Paso Pipeline, particularly in the back half of the week. As production increases, the legacy pipelines to the East fill up, which creates downward price pressure on the basin. Prices in the Permian have dropped this summer but remain above zero, indicating there is a limited amount of room for production to grow but the region is not quite out of takeaway capacity.
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- Analyst Insight
Waha Natural Gas Prices and Production Bounce Upward Last Week
Waha natural gas cash prices soared higher last week according to NGI, as Permian Basin pipeline maintenance constraints dissipated.
- Blog
Chain Reaction - BC Pipeline Outage Disrupts Western U.S. Winter Gas Prices and Flows
Natural gas markets in the U.S. Northwest have been in turmoil ever since a rupture on Enbridge’s BC Pipeline system over a month ago (on October 9) disrupted Canadian gas exports to Washington State at the Sumas border crossing point. Service on the affected line has been restored but at a reduced operating pressure for now, and Canadian gas deliveries to Sumas remain at about half of their pre-outage levels, creating supply shortages in the region. Spot natural gas prices at the Sumas, WA, trading hub have been volatile, soaring well above Henry Hub and rocketing to a record outright price of nearly $70/MMBtu late last week. The outage has reverberated across the Western U.S. gas market, sending regional prices reeling as gas flows adjusted to help offset supply shortages. Today, we examine the knock-on market effects of the outage on Western gas flows and prices, and potential implications for the winter gas market.
- 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.
