Energy Transfer LP is using its intrastate natural gas pipeline capacity in Texas to allow its customers to take advantage of the wide price spreads caused by sub-zero pricing in the Permian Basin.

NGI’s Waha daily cash price has averaged in the negative for much of the past two months, including a four-year low of negative $4.595/MMBtu on Tuesday (May 7). 

“We sure hate to see prices do what they’re doing at Waha, but that’s what happens when you have capacity constraints, which we have right now out of the Permian,” Co-CEO Mackie McCrea said during a first quarter earnings call.

[Want to visualize Henry Hub, Houston Ship Channel and Chicago Citygate prices? Check out NGI’s daily natural gas price snapshot now.]

The Dallas-based operator of pipelines for natural gas...