Natural gas basis price differentials at the Waha and Houston Ship Channel (HSC) hubs in Texas narrowed substantially in the first half of this year versus the second half of 2022, according to an Energy Information Administration (EIA) analysis citing NGI data.

The return to service of both Freeport LNG and the El Paso Natural Gas (EPNG) Line 2000 pipeline after prolonged outages, as well as slower production growth in the Permian Basin and Eagle Ford Shale, have caused Waha and HSC prices to track more closely with the U.S. benchmark Henry Hub this year, said EIA researchers led by Katy Fleury.

NGI’s daily spot price at HSC averaged a 27-cent/MMBtu discount to Henry Hub during 1H2023, the EIA team highlighted, while Waha basis averaged a...