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Projects announced to expand Permian natural gas capacity

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World Pipelines,

The EIA’s latest Natural Gas Pipeline Project Tracker includes five new projects – four newly announced projects and one project under construction – since the last update in April 2022. Of the four new projects, three will expand capacity for existing pipelines, and one will be a new pipeline. If completed as planned, these five projects together would increase takeaway capacity out of the Permian Basin by a combined 4.18 billion ft3/d over the next two years.

The three capacity expansion projects were announced in May and June:

  • The Gulf Coast Express Pipeline Expansion, announced by Kinder Morgan on 16 May, will expand compression on the pipeline, increasing capacity by 0.57 billion ft3/d to 2.55 billion ft3/d. The project is expected to enter service in December 2023.
  • The Permian Highway Pipeline Expansion, which reached a Final Investment Decision (FID) by Kinder Morgan on 29 June, will also expand compression, increasing capacity by 0.55 billion ft3/d to 2.65 billion ft3/d. The project is expected to enter service in November 2023.
  • The Whistler Pipeline Capacity Expansion, announced on 2 May by WhiteWater and MPLX, is a joint venture (JV) between Stonepeak and West Texas Gas, Inc., that will expand compression by installing three new compressor stations on the pipeline, increasing capacity by 0.5 billion ft3/d to 2.5 billion ft3/d. The project is expected to enter service in September 2023.

The new pipeline project reached a FID on 19 May:

  • The Matterhorn Express Pipeline is a JV among WhiteWater, EnLink Midstream, Devon Energy Corp, and MPLX. This pipeline will be 490 miles long and will be able to transport up to 2.5 billion ft3/d of natural gas from the Waha Hub in West Texas to Katy, Texas. The pipeline will receive natural gas from upstream Permian Basin connections and from direct connections at processing facilities in the Midland Basin before connecting to the Agua Blanca Pipeline. The pipeline is expected to enter service in 3Q24.

The project already under construction is expected to be completed by the end of 2022:

  • The Oasis Pipeline Modernization Project will modernise and optimise Energy Transfer’s existing Oasis Pipeline. This expansion would provide an additional 0.06 billion ft3/d of Permian Basin takeaway capacity.
  • According to the July 2022 Short-Term Energy Outlook, the EIA expect production in the Permian Basin to increase by 2.3 billion ft3/d in 2022 and an additional 1.4 billion ft3/d in 2023.

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