Okay. That’s helpful. Second question, also on natural gas prices. And if I could, maybe just curious to get your all thinking on the trajectory of nat gas prices from here. And I guess as we look out beyond 2024 to 2025, you see a lot of LNG capacity coming, which should be supportive.But I think between now and then, there is an expectation here that supply could push prices down further. And just given you guys are close to your customers, just curious kind of what you’re hearing and maybe how you’d expect producers to react if we do see prices fall maybe below $2?Kim Dang Sure. So with respect to the associated gas, obviously, don’t expect much impact there. We’ve had a lot of discussions with our producers in some of the dry gas basins, the breakeven there are pretty low, is what I would say.
There’s always the potential that it could go lower, but we think, again, as you said, as the LNG demand comes on in 2024 and 2025 that those prices improve.As we’ve talked to our producers in the Haynesville and the Eagle Ford, we’ve seen some pullback from the small and medium-sized, list of the larger producers are continuing to produce and as we look at our outlook on our gathering volumes for the year, we’re within 2% of our budget, the 2% off of our budget. And part of the reason that we’re off of our budget has nothing to do with prices that really has to do with the delay in a project. So that’s kind of what we’re seeing.Spiro Dounis Got it. Appreciate all the color. That’s all I had. Thanks guys.Operator And the next question is from Sunil Sibal with Seaport Global Securities.
Your line is open.Sunil Sibal Yes. Hi. Good afternoon everybody. So I just wanted to flush the natural gas long-haul pipeline capacity in Permian a little bit. It seems like when you look at the volatility in Waha prices, it seems to have gone up over the last few months despite the fact that EPNG outage has been restored. So just clear if you could talk a little bit about the nature of your conversations with the customers with regard to building new capacity there? What are the major kind of sticking points before a big project could go ahead?Steve Kean So yes, I mean, look, when we’re taking — we look at the Waha, there’s clearly — as you look out long-term with all the LNG demand coming on, there is going to be basis differential that needs to be solved for really what’s going to take — what this is going to take is commercialization.And as you know, we’ve been talking with customers about a third pipe out of the basin, where that gets pointed ultimately depends on the market need and which LNG facility gets FID next.
But we have been having discussions on both sides with the supply side and the market side, trying to bridge the gap. And I think really, ultimately, it comes down to timing from the market side as well as commercializing an appropriate rate of return from our perspective.Sunil Sibal Got it. Thanks for that.Operator And at this time, I’m showing no further questions.Rich Kinder Okay. Well, thank you very much for joining us today, and have a good evening.Operator This concludes today’s call. Thank you for your participation. You may disconnect at this time.
