image credit: Flickr

New Permian Gas Pipelines Will Reduce Flaring, But What About Prices?

September 9, 2019

Via: Forbes

The NYMEX Henry Hub price for natural gas has firmed up in recent weeks, rising over the $2.50/Mmbtu mark in early September 9 trading thanks to the ongoing heat wave in Texas and other states where natural gas provides a high percentage of power generation. While that price is low in the context of the past 20 years, it is a significant improvement from its close on August 12 of $2.105/Mmbtu.

Index prices for Permian Basin gas, where the Waha Hub spot price has averaged just $.72/Mmbtu during the first 8 months of this year due to lingering constraints on pipeline takeaway capacity, have also risen, closing at a recent high of $2.10/Mmbtu on August 28. That increase is mainly due to the market anticipating the startup of Kinder Morgan KMI +0%’s new, $1.75 billion Gulf Coast Express line, which is scheduled to go into service later in September.

Read More on Forbes