Natural Gas Intel has reported exclusively that pipeline gas flows from the United States into Mexico are being reduced because certain volumes are failing to meet specification requirements. The issue, tied to compositional limits such as nitrogen, sulfur, and moisture, has forced curtailments and left more gas stranded in the Permian basin. For the Waha hub in west Texas, the immediate effect is additional supply without an outlet, and hence, wider discounts to Henry Hub. The Waha hub has long been the most fragile point in the Permian chain,…
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