New Pipelines Set To Ease Permian Natural Gas Glut

The regional price of natural gas produced in the Permian, the top U.S. oil basin, was negative for most of the first half of the year.

Rising associated gas output from oil-targeting wells has had nowhere to go.

Producers had to either flare the gas, within allowed limits, or pay to get rid of what many Permian players see as an undesirable by-product of the valuable crude.

For years, the key constraint to local gas prices has been the insufficient pipeline takeaway capacity, which hasn’t grown in lockstep with the soaring gas production…