Texas Natural Gas Procurement
The heart of U.S. natural gas production with rock-bottom prices
Also available: Electricity Procurement in Texas
The Texas Natural Gas Market
Texas is the nation's largest natural gas producer, and local users benefit from unparalleled access to supply. The Permian Basin, Eagle Ford, and Haynesville formations ensure abundant low-cost gas for the foreseeable future, making Texas uniquely advantaged for gas-intensive industries.
Key Pricing Point(s)
Waha Hub, Houston Ship Channel, Katy
Basis pricing relative to Henry Hub benchmark
Key Market Concepts
Understanding these terms is essential for navigating Texas's natural gas market:
The primary pricing point for Permian Basin gas in West Texas. Waha often trades at a substantial discount to Henry Hub due to production surplus and takeaway constraints.
The benchmark pricing point in Louisiana. While Henry Hub is the national benchmark, Texas local prices (Waha, Houston Ship Channel) often trade at discounts.
A major Gulf Coast pricing point. HSC pricing reflects industrial and export demand in the Houston petrochemical complex.
Natural gas produced alongside oil in the Permian Basin. When oil drilling increases, associated gas production rises regardless of gas prices.
What Makes Texas Unique
Production Dominance
Texas produces more natural gas than any other state, providing structural cost advantage for local users.
Negative Basis Opportunity
West Texas (Waha) gas frequently trades at negative basis to Henry Hub, sometimes substantially so.
Infrastructure Buildout
Ongoing pipeline construction is gradually reducing the Waha discount, but surplus production keeps prices competitive.
Export Impact
LNG export terminals on the Gulf Coast are increasing demand, tightening the market but also providing outlets.
Key Considerations for Texas Buyers
- Waha-based contracts can provide structural cost advantage
- LNG export growth is tightening Gulf Coast pricing
- Associated gas production creates supply regardless of gas economics
- Multiple pricing points (Waha, HSC, Katy) offer arbitrage opportunities
- Industrial load base means sophisticated supplier options
Pipeline Infrastructure
Texas receives natural gas through the following major pipelines:
Major Gas Utilities in Texas
Seasonal Factors
Summer power gen demand; winter heating relatively mild. Waha basis varies with takeaway capacity.
Why Choose Eisenbach for TX Gas?
- Licensed and in good standing
- Deep supplier relationships
- Hedging expertise for basis risk
- Custom procurement strategies
Ready to Optimize Your TX Gas Costs?
Our team understands Texas's market dynamics. Let's discuss your specific situation.
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