In the first half of 2023 (1H23), natural gas spot prices at Texas hubs traded closer to the U.S. benchmark Henry Hub than in the second half of 2022 (2H22). The price difference narrowed in 1H23 because both Freeport LNG and the El Paso Natural Gas Company’s Line 2000 returned to service in February 2023 and because natural gas production increased at a slower pace than in 2022. The Houston Ship Channel—a key regional trading hub for natural gas in East Texas—averaged $0.27 per million British thermal units (MMBtu) below the U.S. benchmark Henry Hub price in 1H23. Similarly, the Waha Hub in West Texas, in the Permian Basin production region, averaged $0.85/MMBtu below Henry Hub.