In 2025, the U.S. midstream oil and gas industry is expected to see growth opportunities, tied to rising hydrocarbon exports with new pipelines and export capacity planned to alleviate bottlenecks. Key trends to look out for include the following:
- The U.S. midstream sector will continue to grow as oil and gas production and exports rise to meet growing demand. President-elect Trump’s plans to expedite permits for pipeline projects and lift the pause on LNG export project approval could further boost the sector’s outlook.
- Permian oil production is expected to reach ~6.52 MMbpd by the end of 2025 with the play having sufficient takeaway capacity of over 7.5 MMbpd. However, at the current production growth rate, a capacity shortfall is expected by the end of the decade.
- While surging production continues to strain Permian gas takeaway capacity, the Matterhorn express pipeline, with 2.5 bcfd capacity, began operations in late 2024, which along with three new upcoming projects – Blackcomb with 2.5 bcfd capacity and the APEX and Hugh Brinson pipelines with 2 bcfd capacity each – anticipated to start in 2026, will help alleviate the bottleneck.
- Appalachian gas production growth will remain limited by takeaway capacity through 2025, although the Mountain Valley Pipeline, with a capacity of 2 bcf/d, which began operations in 2024, has eased some of the constraints.
- Permian NGL supply growth will be supported by new takeaway capacity, including the upcoming Bahia NGL pipeline with a capacity of ~0.6 MMbpd, EPIC’s Y-grade pipeline expansion adding ~0.08 MMbpd, and West Texas LPG pipeline expansion increasing capacity by ~0.42 MMbpd. Meanwhile Appalachia is tapped out without permitting reform.
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