EIA: Permian takeaway capacity set to expand

Natural gas pipeline takeaway capacity in the Permian Basin will soon increase as the Matterhorn Express Pipeline is expected to begin service this month, the U.S. Energy Information Agency (IEA) reports.

Matterhorn (a joint venture with Whitewater, EnLink Midstream, Devon Energy, and MPLX) has a capacity of 2.5 billion cubic feet per day (Bcf/d) and will move natural gas from the Permian Basin to Katy, Texas. Natural gas production from the Permian Basin—primarily associated gas from growing oil production operations—has more than doubled since 2018, reducing regional spot natural gas prices and prompting greater demand for new pipeline takeaway capacity to transport natural gas to more viable markets, the IEA said.

In addition to Matterhorn, three new Permian Basin pipeline projects with a combined capacity of 7.3 Bcf/d have been approved and are in various stages of development:

• Apex Pipeline, with a capacity of 2.0 Bcf/d, is designed to transport natural gas from the Permian Basin to Port Arthur, Texas. Operator Targa Resources expects the pipeline to enter service in 2026.
• Blackcomb Pipeline, with a capacity of 2.5 Bcf/d, is designed to transport natural gas from the Permian Basin to Agua Dulce in south Texas. Operator Whitewater Midstream expects the pipeline to enter service in 2026.
• Saguaro Connector Pipeline, with a capacity of 2.8 Bcf/d, is designed to transport natural gas from the Permian Basin to the U.S.-Mexico border. We expect the pipeline, which connects with the Sierra Madre pipeline on the Mexico side, to enter service by 2027–28.

Pipeline operators have also announced other projects with a total capacity of 7.0 Bcf/d designed to transport natural gas from the Permian Basin to demand centers in Mexico and along the Texas Gulf Coast. These projects, if realized, could come into service between 2025 and 2028.