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US natgas at Waha turns positive for the first time since February, as pipeline constraints ease

?U.S. The spot price of natural gas for Tuesday at the Waha Hub, in West Texas, turned positive for the first time since February. This is because the demand for fuel has increased with the arrival of summer air conditioning and as energy firms are finishing spring pipeline maintenance.

Electric companies use more gas during summer as businesses and homes crank up the air conditioners. Gas-fired power plants account for about 40% of U.S. electricity generation. Prior to Tuesday, Waha's next-day price had been below zero for an unprecedented?90 consecutive days as pipeline restrictions from spring maintenance trapped the gas in the Permian basin, the nation’s largest oil-producing region in West Texas and eastern New Mexico.

Analysts have said for years that negative prices, forcing some energy companies to pay other firms to take gas in conjunction with their oil production were a sign the Permian needed more gas pipelines. There will be more pipes later this year but not fast enough to deal with the current gas production. Analysts predict that energy firms will boost Permian production as new pipes are put into service, and as rising oil prices due to the Iran war encourage oil producers to extract more oil. The U.S. Energy Information Administration predicts that Permian Gas output will reach new record highs each month between May and November as new pipes enter service. In November, it is expected to reach 30.1 billion cubic foot per day (bcfd). This amount of gas could provide around a quarter of the fuel used in the U.S.

One billion cubic feet of gas is enough to fuel five million U.S. households for one day.

NEGATIVE GAS PRICES Permian energy firms are willing to accept some losses in gas, as they can compensate for the profits made from selling oil. In the past decade, negative gas prices were rare. Environmental rules were less strict and drillers were able to?flare off or burn some of their unwanted gases.

In recent years, this gas has gained in value as a fuel for data centers that need a lot of power. It can also be exported via pipelines to Mexico or as LNG to other markets.

Waha Hub: Spot prices The price of a million British thermal unit (mmBtu), which was minus 8 cents on Monday, rose to 42 cents on Tuesday. Daily Waha prices?averaged under zero for the first time in 2019. The price of Daily Waha was first?averaged below zero in 2019.

The average Waha price per mmBtu has been negative $2.19 so far in 2026. This compares to a positive $1.15 for 2025, and a $2.88 positive over the last five years (from 2021-2025). (Reporting and editing by Louise Heavens, Paul Simao, and Scott DiSavino)

(source: Reuters)