Permian Gas Pipeline Relief Now in Motion
Permian natural gas producers and three interstate pipeline operators are starting to wipe the sweat and feel the love with the startup of the Matterhorn Express. The 490-mile, 2.5 BCFD capacity pipeline, is now ready-set-go to transport orphan gas supplies from the Waha Hub to the Katy area outside of Houston, and on to Gulf Coast markets and LNG export plants. And Matterhorn is defying timeline expectations by ramping up volumes less than three weeks after green-lighting operations. Kinder Morgan’s NGPL, Williams’ Transco, and Enbridge’s Texas Eastern are the first recipients of that gas with combined initial gas flows of 1.2 BCFD via three interconnects.
Reese Energy Consulting today is following the latest on one of many Permian nat-gas pipelines still awaiting FIDs or moving to the development stage. That one would be Kinder Morgan, which has now announced a final blessing to go forth and expand the fully subscribed 500-mile Gulf Coast Express to move more gas from the Permian to the Agua Dulce. The $455 million project will boost the pipeline’s capacity of 1.98 BCFD to 2.5 BCFD and is slated for completion in 2026. Permian gas storage is another biggie on the project roster for KM as highlighted in its 3Q earnings report last week. As demand for more natural gas-generated electrical power continues to rise, the company plans to add another 10 BCFD of incremental storage capacity on NGPL’s Gulf Coast system.