US Power Info Administration – EIA


September 20, 2022

Daily Natural Gas Spot Prices and Price Differences

information supply: pure gasoline intelligence
Remark: The value distinction is between the native market worth (Wow Hub) and the nationwide benchmark worth (Henry Hub).

Since late 2021, the hole between the worth of pure gasoline on the Waha hub in West Texas and the US benchmark Henry Hub in Louisiana has been widening. The value of pure gasoline traded at Waha Hub, which is near manufacturing from the Permian Basin, averaged $1.43 per million British thermal items (mmBtu) throughout the first half of September, decrease than Henry Hub costs. As compared, within the first half of September 2021, pure gasoline turnover at Waha Hub averaged 24 cents/mmBtu lower than Henry Hub costs.

Daily Natural Gas Price Difference: There Minus Henry Hub

information supply: pure gasoline intelligence

Manufacturing charges in a area, along with the provision of infrastructure to move pure gasoline to high-demand areas, can have an effect on regional pure gasoline costs. Latest pipeline upkeep within the Permian Basin area has contributed to the extensive worth hole between the Waha Hub and the Henry Hub. On Could 2, the movement of pure gasoline from the Permian Basin on Kinder Morgan’s Permian Freeway pipeline decreased, and the worth of the Waha Hub fell to $1.82 per mmBtu beneath the worth of the Henry Hub. Final month, upkeep of the El Paso Pure Fuel Pipeline decreased movement from West Texas into the Desert Southwest and California, contributing to a hub worth that was $1.78 per mmBtu decrease than the Henry Hub worth on August 26. On 16 September, the worth of the Henri Hub fell by $2.06/MMBtu to the worth of the Henry Hub as manufacturing within the Permian area stays at a comparatively excessive stage.

A lot of the pure gasoline manufacturing within the Permian Basin is said gasoline, which is a by-product of (or linked to) crude oil manufacturing. Pure gasoline manufacturing within the Permian Basin has greater than doubled prior to now 5 years and is anticipated to hit an annual excessive of 16.7 billion cubic ft per day (bcf/d) in 2021 because of elevated crude manufacturing within the area over the identical time interval. has reached. ,

From 2018 to early 2020, pure gasoline manufacturing within the Permian Basin grew quicker than pipeline take-away capability. Given the restricted transport capability to take pure gasoline to client centres, producers bought their pure gasoline at sponsored costs. Consequently, in 2019, Waha Hub costs averaged $1.66/MMBtu lower than Henry Hub costs.

In 2021, further pipeline capability to move pure gasoline from the Permian Basin entered service, and the worth hole between the Waha hub and the Henry hub narrowed. The elevated pipeline capability enabled Permian area producers to ship pure gasoline to demand facilities alongside the Mexico and Texas Gulf Coast, together with liquefied pure gasoline (LNG) export amenities. From April 2022, further pipeline tasks have been introduced from the Permian Basin that can improve pipeline takeaway capability to roughly 4.2 Bcf/d by the top of 2024.

Permian production area: natural gas pipeline and trading center

information supply: US Power Info Administration
Remark: FID = Remaining Funding Resolution.

Main Contributors: Katy Fleury


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