To meet the growing need for pipelines in Texas, four new natural gas projects were recently announced that will drastically increase takeaway capacity from the Permian basin in West Texas. These projects include the construction of the Matterhorn Express Pipeline, a 490-mile-long pipeline that will transport up to 2.5 bcf/d of natural gas from the Waha Hub to Katy, Texas, expected to be completed by the third quarter of 2024.
Additionally, several companies announced that they would expand their existing takeaway capacity by increasing compression throughout the pipelines, allowing more natural gas to pass through the pipelines on a daily basis. These projects include Kinder Morgan’s Gulf Coast Express and Permian Highway Pipelines and WhiteWater Midstream’s Whistler Pipeline.
Source: Energy Information Agency
Another project to expand pipeline capacity, the Oasis Pipeline Modernization Project, is already underway and expected to be completed by the end of 2022, adding an additional 0.6 bcf/d of capacity.
In the short-term, these projects will lead to new jobs in Texas, and in the long-term, they will position Texas to continue to lead the country’s natural gas production, which already produces 23.9% of the country’s natural gas.
These pipelines, which are connected to multiple interstate systems as well as liquefaction facilities that produce liquified natural gas for global exports, will ensure that natural gas is able to reach key markets and help quickly relieve some of the recent price volatility experienced in the natural gas industry.
The Gulf Coast Express Pipeline for its part, plays a crucial role in facilitating exports of natural gas to Mexico and LNG liquefaction terminals along the Gulf Coast in addition to servicing industrial customers throughout the state. Both the Permian Highway Pipeline and the Whistler Pipeline connect to multiple intrastate pipelines and liquefaction facilities along the Gulf Coast as well.
The announced capacity expansions will be completed by the end of 2023, just as the United States is expected to become the largest exporter of liquified natural gas in the world, in line with global demand which is also expected to rise.
The U.S. Energy Information Agency predicts that the Permian basin will increase natural gas production by 2.3 bcf/d in 2022 and an additional 1.4 bcf/d in 2023. In total, these projects will increase takeaway capacity by 4.12 bcf/day. Once again, Texas will help ensure we have enough capacity to handle the anticipated increase in production to meet our energy needs at home and abroad.