Outright Waha cash prices averaged negative $1.16/MMBtu during the week ended June 8 according to data from Bloomberg. This is $0.64/MMBtu higher than the average price during the week ended June 1. Although they are still below zero, this is the highest prices in the basin have been since February as summer demand picks up. Prices are expected to recover further once new takeaway capacity comes online later this year.
Source: RBN NATGAS Permian, Wood Mackenzie
The price increase came as overall outflows from the Permian Basin were up week-on-week, driven by higher outflows to the West. Outflows to the West averaged 2.6 Bcf/d, up 0.3 Bcf/d week-on-week with higher flows on both El Paso and Transwestern. As seen in the chart above, Westbound flows are higher than they were at this time during the last two years. Eastbound flows from the Permian were stable at 12.9 Bcf/d. A bump to Eastbound flows is anticipated as an expansion on Gulf Coast Express is expected to be the first of the major projects due online this year. There is currently no indication that the project is online, but it could be coming any day. The project will expand the capacity of Gulf Coast Express, which began service in 2019, by 0.57 Bcf/d.
