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NATGAS: Waha Hits Record Negative Price Aug. 30: Reuters

NATGAS

Waha natural gas prices in the Permian shale have turned negative a record number of times in 2024, including hitting an all-time low today, Reuters said.

  • Waha spot gas prices fell around 120% to a record low of minus $4.80/MMBtu today, Reuters said. The prior record was minus $4.76/MMBtu.
  • Pipeline constraints in the Permian continue to trap gas in the region, causing supply to outstrip demand.
  • Waha has averaged below zero 21 times in August and 32 times in 2024 to date.
  • The negative prices are an obvious sign that the region needs more gas capacity to lift the bottleneck and move the gas to meet demand in other areas.
  • However, there is only one large infrastructure project in the region, the 2.5 bcf/d Matterhorn Express Pipeline, likely to enter service in Q4.

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