Looking at Permian Natural Gas Takeaway from a Different Angle – Can CFE & Arizona Help Improve Waha Basis Differentials?

Waha gas typically trades at a large basis discount to the Henry Hub, and at times, prices in the Permian have been negative. Most of the industry focus is on increasing takeaway capacity to the Gulf Coast region, but what about west toward California and south to Mexico? We discuss several developments that could help increase the flow of Permian gas in those directions.