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Texas Waha nat gas prices plunge 60% following pipeline force majeures

Published 09/20/2018, 02:23 PM
Updated 09/20/2018, 02:23 PM
© Reuters.  Texas Waha nat gas prices plunge 60% following pipeline force majeures
  • Next-day natural gas prices at the Permian Basin's Waha hub sank 60% to their lowest on record due to pipeline constraints limiting the amount of gas that can move out of the region.
  • Prices at the Waha hub fell nearly $1 to $0.66/MMBtu, vs. an average of $2.25/MMBtu so far this year, $2.71 in 2017 and a five-year average of $3.11.
  • Traders say Waha’s price plunge was caused by a pair of force majeures in Kinder Morgan’s (KMI -1.2%) NGPL system that are expected to restrict gas flows from west Texas to the Midwest.
  • Waha's spread vs. the Henry Hub benchmark in Louisiana rose to $2.45/MMBtu, its widest since November 2008 and far above the average YTD discount of $0.70, $0.27 in 2017 and a five-year average of $0.14.
  • ETFs: UNG, UGAZ, DGAZ, BOIL, KOLD, UNL, DCNG, GAZB
  • Now read: New Lows In Natural Gas, But It Holds .70


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