Permian Egress Capacity Boosts Waha Hub Prices
Waha Hub natural gas prices have been trading at negative levels for much of this year due to Permian Basin production outpacing takeaway capacity. In May 2026, Permian production reached nearly 23 billion cubic feet per day (ft3/d), while egress from the basin has struggled to keep pace.
The economics behind negative gas prices are well understood: oil production is more valuable than natural gas, so producers have been accepting negative prices for their gas to keep oil flowing. In 2024, Waha gas prices were negative for 172 days (nearly 50% of the time), but fell to 105 days in 2025 with the startup of the Matterhorn pipeline.
However, relief was short-lived as gas prices have traded negative again this year. The outlook for Waha prices is finally looking more bullish with the introduction of 4.5 billion ft3/d of additional egress capacity to the region expected this year.
The Hugh Brinson pipeline will add 2.2 billion ft3/d of takeaway capacity, while the Blackcomb pipeline will provide 2.5 billion ft3/d of takeaway capacity from the basin to Agua Dulce Hub. Both pipelines are expected to reach full capacity by early next year and remain at or near 100% utilisation for several years.
The Gulf Coast Express (GCX) natural gas pipeline added about 0.6 billion ft3/d of takeaway capacity, while the Hugh Brinson and Blackcomb pipelines will provide the lion's share of new takeaway capacity this year. The Waha Hub is expected to see prices rise from $0.21/MMBtu in June 2026 to over $3.80/MMBtu by January 2027.