Commodities
Permian Gas Prices Bounce Back as Pipeline Capacity Expands
The Permian Basin in West Texas and southeastern New Mexico has experienced negative natural gas prices due to insufficient takeaway capacity. However, with recent pipeline expansions such as the Gulf Coast Express and Hugh Brinson coming online, this trend is expected to reverse.
Average Waha Hub cash prices have been below zero from September 2025 to May 2026, except for January. But in mid-June, prices shot back above zero as the Gulf Coast Express expansion began service.
The region's pipeline capacity has grown significantly in recent years, with more projects still under construction. Understanding gas flow and pipeline modeling is crucial to predicting market shifts and identifying potential bottlenecks.