Natural Gas Intel has reported exclusively that pipeline gas flows from the United States into Mexico are being reduced because certain volumes are failing to meet specification requirements. For the Waha hub in west Texas, the immediate effect is additional supply without an outlet, and hence, wider discounts to Henry Hub. The Waha hub has long been the most fragile point in the Permian chain, with takeaway capacity lagging behind surging associated gas production. More than 70% of its gas demand is covered by pipeline flows from Texas for everything from power plants to industrial users. In the meantime, the growing pull from Gulf Coast LNG export plants will continue to compete for Permian supply, leaving Waha exposed to volatility.