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US natgas at Waha hub, Texas, falls into negative territory

The U.S. Natural Gas Prices for Monday in West Texas' Permian Shale Basin turned negative due to spring pipeline maintenance.

The financial firm LSEG reported that the average gas production in the Lower 48 U.S. States has fallen to 103.9 billion cubic feet per day so far in May. This is down from a record monthly output of 105.8 bcfd set in April.

Spring maintenance was a part of the reason that some gas pipelines were reduced in output, including the 2.7-bcfd Permian Highway pipe from West Texas' Permian basin to Texas Gulf Coast.

Kinder Morgan announced that it will be performing a turbine swap at the Big Lake Compressor Station from May 13 to 26. This will reduce mainline capability to approximately 2.2 Bcfd.

The Permian Highway's reduction has trapped some gas within the Permian Basin, which is helping to boost spot gas prices in Waha Hub The price of British thermal units (mmBtu), which was 94 cents on Friday, fell by more than 260% to a low of minus 1.52 dollars for Monday.

This was the fourth time that Waha prices were below zero on average in 2025. The previous averages for the five years prior (2019-2023) were $1.96, 77 cents and $2.91.

In 2019, the Waha price average was first below zero. This happened 17 times between 2019 and 2020, six times each in 2023, and 49 times total in 2024.

Analysts said that low prices are a sign that the Permian needs more gas pipelines.

Some pipes are under construction including Kinder Morgan's Gulf Coast Express, Blackcomb, and Energy Transfer's Hugh Brinson. However, they will not be in service before 2026.

The Permian Basin in West Texas, and Eastern New Mexico, is the largest and fastest growing oil producing shale region of the United States.

With the oil, a lot of gas is also released.

Energy firms are willing to accept some gas losses, even though U.S. oil futures have fallen by about 13% in 2025. They can make up the losses in oil sales.

Some energy companies said that they would reduce their capital expenditures on new oil drilling in 2019 because oil prices are on course to fall for the third consecutive year in 2025. (Reporting and editing by Andrea Ricci; Scott DiSavino)

(source: Reuters)