US natgas prices at Waha hub in Texas fall into negative territory
By Scott DiSavino
Sept 15 (Reuters) - U.S. natural gas prices for Monday in the Permian shale basin in West Texas turned negative as autumn pipeline maintenance and other constraints trap gas in the nation's biggest oil-producing basin.
Financial company LSEG said that average gas output in the Lower 48 states has dropped to 107.6 billion cubic feet per day (bcfd) so far in September, down from a record monthly high of 108.3 bcfd in August.
Traders have noted the pipeline maintenance trapped some gas in the Permian basin, helping spot gas prices at the Waha Hub NG-WAH-WTX-SNL to fall by more than 2,350% from about 6 cents per million British thermal units (mmBtu) for Friday to a 17-week low of minus $1.26 for Monday.
That was the sixth time Waha prices have averaged below zero in 2025 and compares with an average of $1.66 per mmBtu in 2025, 77 cents in 2024 and $2.91 over the previous five years (2019-2023).
Waha prices first averaged below zero in 2019. It happened 17 times in 2019, six times in 2020, once in 2023 and a record 49 times in 2024.
Analysts have said that negative prices were a sign the Permian region needs more gas pipes.
There are some pipes under construction, including Kinder Morgan's Gulf Coast Express expansion, the WPC joint venture's Blackcomb and Energy Transfer's ET.N Hugh Brinson, but they are not expected to enter service until 2026.
The Permian in West Texas and eastern New Mexico is the nation's biggest and fastest-growing oil-producing shale basin.
A lot of gas also comes out of the ground with that oil.
Even though U.S. crude futures CLc1 are down about 12% so far in 2025, energy companies have been willing to take some losses on gas because they can still make up for those with profits from selling oil.
But with oil prices on track to decline for a third year in a row in 2025, some energy companies plan to reduce the amount of capital they will spend on new oil drilling this year. Over time, that could result in less oil and associated gas out of the Permian.
Nationwide, U.S. oil and gas output is expected to reach record highs in 2025 before easing in 2026, according to the latest federal outlook.
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