With Waha Negative Price Streak, Texas NatGas Pipeline Developers Work on Permian Takeaway

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Natural gas prices at the Waha Hub in West Texas surpassed 25 consecutive days in negative territory last week, according to Reuters, primarily due to a lack of takeaway capacity. Texas pipeline developers are working on providing outlets to move gas out of the Permian to reach lucrative end markets.

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Permian Gas Growth

An article last week from the U.S. Energy Information Administration (EIA) pointed out that U.S. natural gas production reached a new record in 2025. While most of this gas came from the Appalachia Basin, the Permian Basin of West Texas and New Mexico saw the highest production growth of any U.S. area, adding more than 2.5 billion cubic feet per day (Bcf/d) in gas production in 2025 and accounting for 23% of U.S. marketed natural gas production last year.

While drilling in Appalachia is gas-directed and production can be slowed and increased in response to markets and takeaway availability, natural gas production in the Permian primarily is a byproduct of oil production, and the thirst for oil has outpaced the region's ability to profitably transport the associated natural gas.

This has been apparent this year as prices on the Permian's Waha Hub, the primary natural gas trading hub for Permian gas, last week surpassed 25 days in negative territory, according to Reuters, setting a new record.

What & Where is the Waha Hub?

The Waha Hub is a point in Pecos County, Texas, where more than a dozen natural gas pipelines interconnect, representing the primary trading point for Permian gas. Prices on the Waha provide the bellwether to gauge the profitability of shipping the associated gas production.

And that has more or less been nil for a very long time. Reuters reported late last week that prices on the Waha Hub have averaged negative 37 cents per million British thermal units (mmBtu) this year, versus $1.15 in 2025 and $2.88 over the past five years.

Hot Market

Natural gas is, of course, consumed in domestic power plants and in commercial, industrial and residential applications, but the primary reason the fuel has been in the news lately is the skyrocketing gas prices seen in Europe and Asia due to supply disruptions caused by the war in the Middle East. Spot liquefied natural gas (LNG) prices on the Asian market were up around 80% this month by the end of last week after having spiked higher earlier, while European prices have been very volatile, but are hovering around a 60% increase in price.

North American gas has been largely, although not entirely, insulated from these sharp price increases, and U.S. LNG exporters are doing what they can to sell as much inexpensive U.S. gas as is feasible on the inflated global markets.

In the meantime, lots of gas resides in the Permian, negatively priced, primed to play a larger role in domestic and international markets. Enter the pipeline developers.

Permian Natural Gas Pipeline Development

On the ground, three pipeline projects presently under construction are the primary conduits expected in the near-term to move increased gas out of the Permian and onward to end markets, including the Gulf Coast LNG plants in Texas and Louisiana. These include Kinder Morgan's Gulf Coast Express expansion project, Energy Transfer's Hugh Brinson Pipeline and WhiteWater Midstream's Blackcomb Pipeline, all of which originate in West Texas and will deliver to end markets and interconnections in an easterly direction within the state. All are expected to be completed this year.

Gulf Coast Express Expansion

Of the three projects, Kinder Morgan's expansion project represents a fairly small monetary outlay for a significant gain in capacity. Consisting primarily of adding compressor stations to the existing Gulf Coast Express (GCX) Pipeline route, the project also is the first of the three that will be completed, expected this summer.

The 450-mile GCX mainline originates at the Waha and carries nearly 2 Bcf/d to the Agua Dulce area near Corpus Christi on the Gulf Coast.

The addition of new compressor stations will increase the pipeline's carrying capacity more than 25%, by about 570 million cubic feet per day, putting the pipeline's takeaway capacity at more than 2.5 Bcf/d when the expansion is completed.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can learn more by viewing the related project reports.

Blackcomb Pipeline

Also moving gas from West Texas to the Agua Dulce Hub will be WhiteWater Midstream's grassroot Blackcomb Pipeline.

When completed, this pipeline will provide 2.5 Bcf/d of takeaway capacity from the Permian to the Gulf Coast. Construction is expected to wrap up toward the end of this year. In addition to the 365-mile mainline between Ozona and the Agua Dulce area, construction includes a 55-mile lateral between Rankin and Midkiff, near the pipeline's origin point.

Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.

Hugh Brinson

The third Permian gas pipeline presently under construction, Energy Transfer's Hugh Brinson (formerly Warrior) Pipeline, originates about five miles from Rankin in the Waha region. Unlike the other two pipelines, Hugh Brinson will carry around 1.5 Bcf/d of Permian gas to an interconnection not near the Gulf Coast, but in the Dallas area, and from there on to destinations linking to various markets, including Gulf Coast facilities.

The 440-mile, 42-inch-diameter pipeline will start in West Texas and deliver gas to Maypearl, Texas, just south of the Dallas-Fort Worth metroplex, supplying data centers and power plants along the way. From Maypearl, the pipeline will connect to Energy Transfer's existing network, supplying multiple regions, including Gulf Coast plants.

In addition to the mainline, construction includes a 42-mile lateral in the Midland area to supply regional natural gas processing plants in West Texas.

Construction on the lines and compressor stations is expected to be completed toward the end of this year. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.

Outside of the Permian

While these three pipelines will move more gas directly from the Permian to end markets in Texas and on to Louisiana, two other projects that are under construction are worth mentioning, taking similar roles in moving Permian gas to the Gulf Coast LNG markets, albeit outside of the West Texas region. Kinder Morgan's Trident project will provide 2 Bcf/d of capacity from the Katy Hub near Houston to the industrial corridor around Port Arthur, which includes LNG and chemical plants.

Also intended as a debottleneck of the Katy Hub area is WhiteWater's grassroot Blackfin project, originating just west of Katy and carrying 2.5 Bcf/d of gas to Jasper, Texas, near Beaumont, to serve markets in Texas and Louisiana, including LNG facilities. The pipeline will be a crucial gas conduit for Venture Global's upcoming CP2 LNG plant in Louisiana.

Both pipelines are around 200 miles long. Subscribers can learn more by viewing the reports on the Trident and Blackfin projects.

Key Takeaways

• Natural gas prices at the Waha Hub in West Texas surpassed 25 consecutive days in negative territory last week, primarily due to a lack of takeaway pipeline capacity in the region.
• Natural gas production in the Permian increased more than in any other region last year, growing by more than 2.5 Bcf/d.
• Pipeline operators Kinder Morgan, WhiteWater Midstream and Energy Transfer are at work on building more than 4.5 Bcf/d of additonal takeaway capacity directly out of West Texas that is expected to come online this year.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).