Natural gas prices at Waha remained punishingly low during the week ended April 27, although not quite as low as during the week prior. Pipeline egress out of the Permian Basin remains constrained as spring maintenance season hits the basin especially hard, holding down prices as oil-hungry producers continue to bring gas to market. According to data from Natural Gas Intelligence (NGI), outright Waha cash prices averaged negative $5.67/MMBtu during the week ended April 27, up $0.89/MMBtu from the average during the week ended April 20. Prices in the basin were below negative $4.00/MMBtu all week but dropped to nearly negative $8.00/MMBtu over the weekend when NGPL declared force majeure because of pressure issues on a compressor station in Bailey County, TX. The pipeline was already working on equipment in the area. Secondary out-of-path firm transport will be unavailable for the duration of the event. This is holding outflows from the Permian to the North below capacity, as shown in the blue line in chart below.
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