Negative Waha cash prices were a major theme of 2024, but have not been an issue for the first two months of 2025 as high flows on the new Matterhorn Express Pipeline and relatively few maintenance events have loosened constraints in the region and allowed producers to receive actual money for their gas on the spot market. However, over the past week Waha has come very close to negative territory again, according to data from Natural Gas Intelligence (NGI). Outright Waha cash prices averaged just $0.79/MMBtu for the week ended March 3, down $2.19/MMBtu week-on-week. Prices averaged $1.35/MMBtu in the last few days of February but then dropped to just $0.03/MMBtu over the weekend as supplies climbed.
Featured Articles
- Analyst Insight
Outbound Constraints Create Negative Waha Gas Prices for Most of Last Week
Waha natural gas prices still languished in negative territory for most of last week, as outflows were restricted on several corridors even as Matterhorn Express flowed significant volumes.
- Blog
King of Pain - Waha Price Collapse Signals Worsening Gas Supply Glut in the Permian
The U.S. natural gas market last week was again reminded of the hair-trigger conditions that Permian producers and marketers are operating under — with gas production pushing against available takeaway capacity, all it takes is an otherwise minor/routine maintenance event on even one West Texas takeaway pipeline to send regional gas prices spiraling into negative territory. Waha Hub gas prices last week collapsed to their lowest level ever, with intraday trades even going negative — meaning some had to pay the market to take their gas. This wasn’t the first time that’s happened in the Permian — a similar event occurred in late November 2018 — but it was the worst to date and signals a heightened supply glut in the region, at least until the first new takeaway pipeline comes online in the fourth quarter of this year. Today, we explain the recent price weakness in West Texas and implications for Permian basis in 2019.
- 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.
