…And this definitely ain’t no foolin’ around for Permian midstream operators in a wind sprint to add pipeline and processing capacity in advance of What Lies Around the Corner for Gulf Coast LNG. Reese Energy Consulting today is following the latest from the trenches where construction—planned and in progress—is showing some love across the Midland and Delaware with newbuilds and expansions to meet monthly record gas volumes.
At present, five LNG projects are under construction with two expected to go online next year. Upon completion of all by 2027, this will add a combined export capacity of 9.7 BCFD. According to the EIA, total LNG feed gas demand this year will average 13 BCFD, increase to nearly 25 BCFD by 2028, and nearly 28 BCFD by 2030—the lion’s share hitching a ride to the Gulf.
To stay ahead of that challenge, Enterprise Products recently announced plans for two more gas plants and the 550-mile Bahia NGL pipeline. Two new gas pipelines and one pipe expansion are expected to go live over the next two years, including Whitewater Midstream’s Matterhorn Express, Energy Transfer’s Warrior, and Kinder Morgan’s Permian Highway expansion. Targa, however, is still deliberating its proposed 563-mile Apex pipeline slated for service in 2026 that would flow 2 BCFD from Midland to Jefferson counties.
In processing news, Durango Midstream just received funding giddy-up for continued construction of its Kings Landing processing complex in the Delaware. Phase I, slated for completion next year, will include 225 MMCFD of capacity with Phase II fast on its heels.