
‘Let’s Rock This Pipe!’
Following our post yesterday, Reese Energy Consulting is talking natural gas pipelines again for those whose heart’s race each time a new project is announced or pronounced “Go!” We share the same affliction.
Now sealed with a FERC kiss, the 304-mile Mountain Valley Pipeline is officially blessed-stamped-authorized to begin service where it will deliver 2 BCFD of low-cost Appalachian gas to Mid- and South Atlantic markets. Ten years in the making at an estimated cost of $7.85 billion, final preparations to fire up operations on MVP are now in high gear to welcome aboard Marcellus and Utica gas from the nation’s largest natural gas basin. Producers were rumored to holler, “Let’s rock this pipe!”
Back in the Permian, pipeline constraints and natural gas takeaway have producers sweating it out for a go-live date on the 580-mile, 2.5 BCFD capacity Matterhorn Express. Certain to fill up lickety-split, Matterhorn offers some much-needed relief to move record volumes of residual gas out of the basin. At least until the end of next year. While three other natgas pipeline projects are on midstreamers’ Permian to-do list, including Targa Resources’ Apex, Energy Transfer’s Warrior, and Kinder Morgans’ expansion of its Natural Gas Pipeline of America system, a new cowboy in Perm Town has big plans for the next big gas pipe behind Matterhorn. Houston-based Moss Lake Partners (MLP) is hot on its NGL heels to build the 690-mile DeLa Express, which would move 2 BCFD of rich gas from West Texas to Gulf Coast fractionators and export terminals. The project would include access to MLP’s Hackberry, La., NGL export project.