West Texas Gas Prices Go Negative for First Time in 2 Years

Natural gas prices in West Texas dipped below zero for the first time since 2020 as booming production overwhelms pipeline networks, trapping supplies in the region.

Gas for next-day delivery at the Waha hub in the prolific Permian Basin fell to around negative $2 per million British thermal units Tuesday, traders said. That compares with about $5 a week ago.

Producers are effectively paying someone to take gas off their hands -- something that hasn’t happened in two years. Seasonal pipeline maintenance is worsening existing constraints on the region’s network of gas conduits as mild weather curbs consumption.

America’s gas ...