Western Natural Gas Prices Soar on Heat Forecasts, New Takeaway Capacity

Western natural gas prices surged during the first day of bidweek trading for August delivery. Forecasts pointed to intensifying heat in the region, driving up demand and supporting higher prices. The West Texas baseload price more than doubled, reaching $4.150 per million British thermal units (MMBtu).

The Permian Basin takeaway capacity added to the upward pressure on Waha prices. In contrast, Southeast basis premiums retreated from July levels.