US Natgas Prices Turn Positive as Pipeline Constraints Ease

US natural gas prices at the Waha Hub in West Texas have turned positive for the first time since early February. The change comes as demand for gas increases with the start of summer air conditioning season and energy firms complete spring pipeline maintenance.

The Permian Basin, the largest oil-producing basin in the US, has been plagued by negative gas prices due to pipeline constraints from maintenance. However, analysts expect a boost in gas output when new pipelines enter service later this year.

According to the US Energy Information Administration, Permian gas output is projected to rise to fresh record highs every month from May to November, reaching 30.1 billion cubic feet per day (bcfd) in November.

The increased gas supply will be enough to supply around a third of all fuel consumed in the US, with one billion cubic feet being equivalent to supplying five million homes for a day.