Texas Natural Gas Prices Plunge to Record Low

SEATTLE (Oil Monster):  Next-day natural gas prices at the Waha hub in West Texas tumbled to a record low following an equipment failure of two compressor stations at Kinder Morgan's El Paso Natural Gas Pipeline in New Mexico that stranded gas in the Permian Basin.

The failure, which caused El Paso to declare a force majeure, cut the operational capacity through the stations by ~200M cf/day to 400M cf/day beginning yesterday.

Spot prices for Wednesday at the Waha hub collapsed to an average of $0.12/MMBtu, compared with an average of $1.72/MMBtu so far this year, $2.10 in 2018 and a five-year average of $2.80.

Courtesy: www.seekingalpha.com