Natural gas prices in the Permian Basin of West Texas are plunging toward zero as booming production overwhelms pipeline networks, creating a regional glut of the fuel.
Gas in an area of the vast Permian known as Waha traded for as little as 20 cents to 70 cents per million British thermal units on Monday, traders said. That compares with the US benchmark futures contract that’s trading around $5.20 and European prices close to $28.
If West Texas prices tumble into negative territory, energy producers will effectively be paying someone to take gas off their hands — something that hasn’t happened in two years.
