Hugh Brinson Pipeline Opening Weighs on Natural Gas Prices

Natural gas prices took a hit on Friday ahead of the scheduled opening of Energy Transfer LP's Hugh Brinson pipeline in Texas. The pipeline, set to begin service next week, will be able to transport approximately 2.2 billion cubic feet per day (bcf/day) of gas from the Permian Basin to East Texas.

The pipeline is expected to boost domestic natural gas supplies at Erath, Louisiana, where benchmark US gas futures are traded at the Henry Hub. Despite this bearish factor, losses in nat-gas prices were limited on Friday due to hot weather forecasted for next week, which could increase demand from electricity providers.

According to the Commodity Weather Group, above-average temperatures are expected across the eastern two-thirds of the US from September 2-11. This positive factor is likely to support natural gas prices in the short term.