Permian Pipeline Constraints Drive Record-Setting Negative Gas Prices

U.S. natural gas prices at the Waha Hub in Texas have closed in negative territory for a record 12th day, highlighting pipeline constraints in the Permian Shale region.

The Permian is the country's biggest oil-producing basin, and its associated gas production has hit record highs every year since 2013, with an average of 27.6 billion cubic feet per day (bcfd) in 2025.

Analysts say more pipelines are needed to handle the growing gas output, which is expected to rise to 29.0 bcfd in 2026 and 29.6 bcfd in 2027, according to the U.S. Energy Information Administration (EIA).

Kinder Morgan's $455 million Gulf Coast Express expansion is expected to enter service in mid-2026, increasing pipeline capacity by around 0.57 bcfd.