Mexico should expect higher natural gas prices in 2021 as coronavirus vaccines become available and global economies heat up following the pandemic-inspired slump of 2020.

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Even the Waha hub in West Texas, which saw wild pricing swings and went negative on numerous occasions in 2020, should see more stability and a reduced differential to Henry Hub for the “foreseeable future,” according to analysts at Tudor, Pickering, Holt & Co. (TPH).

This is largely because of Kinder Morgan Inc.’s 2.1 Bcf/d Permian Highway Pipeline (PHP), which began full commercial in-service on Jan. 1 and is now delivering gas from Waha in West Texas to the Katy area near Houston, along with connections to the Gulf Coast and Mexico markets.

The new pipeline had been flowing volumes during the...