New Pipelines Filling Up Fast: Permian Prices May Not Stay Firm

Permian Basin natural gas prices have remained firm since their recovery in June, but negative prices could return due to the rapid filling of new takeaway capacity.

NGI's Leticia Gonzales, managing director of North American natural gas pricing, warned that shippers are quickly consuming available space on pipelines.

New pipelines might not be enough to prevent a return to negative prices as they fill up quickly. According to Gonzales, 10 Bcf/d of new capacity is planned through 2030, but this may still not meet demand.