The Permian Basin is set to see five new pipeline projects in the coming next year. Three projects will expand existing pipelines’ capacity, while the other two involve the construction of new pipelines. If everything goes according to plan, these five new pipelines will collectively add 4.18 billion cubic feet per day (Bcf/d) to the region’s takeaway capacity over the next two years, as shown in Exhibit I, collectively relieving potential gas takeaway constraints in the shale play.
Exhibit 1: Permian gas production and takeaway capacity in billion cubic feet per day
Kinder Morgan announced on May 16th that the Gulf Coast Express Pipeline Expansion will increase compression on the pipeline, boosting capacity by 0.57 to reach 2.55 Bcf/d. The project is expected to become operational in December 2023.
On June 29th, Kinder Morgan made a final investment decision on the Permian Highway Pipeline Expansion, increasing compression and boosting capacity by 0.55 to get to 2.65 Bcf/d. The project is scheduled to commence operation in November 2023.
On May 2nd, WhiteWater and MPLX’s announced the Whistler Pipeline Capacity Expansion. It will add three new compressor stations to the pipeline, boosting it by 0.5 to achieve 2.5 Bcf/d. The project is expected to be operational in September 2023.
WhiteWater, EnLink Midstream, Devon Energy Corp, and MPLX have teamed up to create the Matterhorn Express Pipeline, a 490-mile pipeline that will be able to carry up to 2.5 Bcf/d of natural gas from the Waha Hub in West Texas to Katy, Texas. Permian Basin upstream sites and Midland Basin’s processing facilities will provide Matterhorn with natural gas before it connects to the Agua Blanca Pipeline. The pipeline is slated to become operational in the third quarter of 2024.
Finally, the Oasis Pipeline Modernization Project will modernize and optimize Energy Transfer’s existing Oasis Pipeline. This expansion would provide tiny additions of 0.06 Bcf/d to the Permian Basin takeaway capacity.
– Manuel Diaz
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