Delayed startup of the Sur de Texas-Tuxpan pipeline, which could continue indefinitely amid possible arbitration proceedings by Mexico’s CFE , already appears to be impacting South Texas gas supply. Over the past several months, supply likely contracted by the state-owned power generator to feed the delayed pipeline has overwhelmed the region, depressing prices and rapidly filling regional storage inventories. In June, basis prices at key hubs in south and east Texas are down sharply compared to last year. At Texas Eastern STX, cash basis has averaged minus-12 cents/MMBtu this month, or about 14 cents lower compared to last June. At the NGPL STX hub, basis prices averaging minus-9 cents/MMBtu are down from an average 1 cent premium to the […]