Happy Wednesday!
Did anyone happen to read the
Oil & Gas Journal’s Daily Update Newsletter on September 11, 2024, they
had an article titled, “Permian basin natural gas pipeline capacity set to
increase”? The article is on how over
the next couple of years natural gas will have easier access to more markets. The first of the natural gas pipeline projects
to go online will be the Matterhorn Express Pipeline which is expected in the third quarter according to the Energy Information Administration, it will transport 2.5 billion cubic feet per day (bcfd). The Matterhorn Express Pipeline is a partnership
between EnLink Midstream, Whitewater, Devon Energy, and MPLX and it will bring natural
gas almost 580-miles from the Permian Basin to Katy, Texas. The need for Matterhorn
Express Pipeline and the other future pipelines is due to demand for natural
gas has increased over the last few years and oil producers are producing more
oil and natural gas is a byproduct of drilling, hence they want more markets to
export to. Other natural gas pipelines are
in the works coming out of the Permian Basin include Apex Pipeline (≈2.0
bcfd) which will connect Port Arthur, Texas (2026); Blackcomb Pipeline (≈2.5
bfcd) which will connect to Agua Dulce in South Texas (2026); and Saguaro
Connector Pipeline (≈2.8 bcfd) which will connect to the US-Mexico border and to
Mexico’s Sierra Madre pipeline (2027-2028). Other natural gas pipelines have been
revealed nonetheless they haven’t been developed to the phase these three
have. The lack of natural gas pipelines
has had a negative effect on prices according to the article, and pipelines
opening up to markets will improve prices. If you would like to read more of this article
from Oil and Gas Journal, please click the links: Permian
basin natural gas pipeline capacity set to increase | Oil & Gas Journal
(ogj.com).
Check out our Blog in mid-February
for details on the Saguaro Pipeline!
Don’t forget to check out our ESC's website or contact us via the email in the
blog, if you have a liquid hydrocarbon project you would like to
see get off the ground!
We hope you have a relaxing
evening!
**Disclaimer: You may be charged a fee to read The Oil
and Gas Journal’s article. **