EIA: Permian Basin gas capacity will increase with the launch of Matterhorn pipeline

The U.S. Energy Information Administration said Tuesday that the Matterhorn Express Pipeline is expected to begin operating in this month.

Matterhorn, in a joint venture between Whitewater, EnLink Midstream and MPLX will transport natural gases from the Permian basin to Katy, near Houston, Texas. The pipeline can transport 2.5 billion cubic feet of natural gas per day.

Why it is important

EIA estimates that by increasing the capacity of the Permian Gas Takeaway, the Matterhorn Pipeline could narrow or eliminate the difference in price between Waha Hub and Henry Hub.

Permian Basin in West Texas and Eastern New Mexico, the largest and fastest-growing oil-producing shale region of the United States, is also an important source of natural gases.

CONTEXT

The EIA reported that three other Permian basin pipeline projects, in addition to Matterhorn have been approved and currently being developed.

These projects have a combined capability of 7.3 Bcf/d and are known as Apex Pipeline Blackcomb Pipeline and Saguaro Connector Pipeline.

The EIA reported that pipeline operators had also announced new projects with a total capacity of 7.0 Bcf/d to transport natural gas from Permian to markets in Mexico and the Texas Gulf Coast.

If these projects are realized, they could be operational between 2025-2028.

By the Numbers

The agency reported that the lowest spot price for natural gas recorded at the Waha Hub in this year was $6.41 per million British Thermal Units on August 29.

(source: Reuters)