(Oil & Gas 360) – Another 2.5 bcf/d of takeaway is coming for Permian gas via the Matterhorn Express Pipeline, which is expected to be put into service just in time for heating season.
According to project lead EnLink Midstream of Houston, Matterhorn is expected to deliver enough natural gas for two million homes after its 580-mile route from the Permian to Katy, Texas, outside Houston.
In the $1.7 billion project, EnLink is joined by midstream partners Whitewater and MPLX and producer Devon Energy.
Matterhorn’s 2.5 bcf/d from the Permian is expected to roughly triple with three other pipelines in varying stages of development in the basin.
Whitewater is also constructing its Blackcomb Pipeline (capacity 2.5 bcf/d) from the Permian to Agua Dulce in southern Texas, with the first gas expected in 2026.
Targa Resources operates the 2 bcf/d Apex Pipeline from the Permian to Port Arthur, Texas, which is slated to begin operations in 2026.
Another 2.8 bcf/d in takeaway is expected with the Saguaro Connector pipeline to connect with the Sierra Madre pipeline at the U.S. border when completed sometime the next 3-4 years.
According to the Energy Information Administration (EIA), several other Permian pipeline projects are on the board but have yet to be approved.
In the last eight years, gas from the basin has continued to outgrow delivery in the Permian. This has affected pricing, with the Waha Hub often having the cheapest gas in the country, and it has also forced companies to flare stranded gas.
Besides the economic implications for operators of flaring (i.e., disposing) of a valuable commodity, the practice has been a source of legal friction between producers and regulators.
Flaring is regulated by the Texas Railroad Commission. While the Commission in effect outlaws the practice, it routinely issues exceptions so as to not interrupt companies’ operations.
And while the Environmental Protection Agency is looking for further restrictions on the practice through the Clean Air Act, the attorneys general of Texas and 20 other states have sued the agency. The Permian is the single largest source of methane emissions in the country.
The Marcellus produces 36 bcf/d, 50% more than the Permian. The two basins account for slightly less than half the country’s 125 bcf/d of domestic natural gas production.
By Jim Felton for oil&gas360
