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EIA: Permian Takeaway Capacity to Increase

by Krystal

The U.S. Energy Information Administration (EIA) has announced that natural gas takeaway capacity in the Permian Basin is set to expand. This increase comes with the upcoming launch of the Matterhorn Express Pipeline, expected to start operations this month.

The Matterhorn Express Pipeline, a joint venture between Whitewater, EnLink Midstream, Devon Energy, and MPLX, will have a daily capacity of 2.5 billion cubic feet (Bcf/d). It will transport natural gas from the Permian Basin to Katy, Texas. Since 2018, natural gas production in the Permian Basin—primarily from associated gas linked to growing oil production—has more than doubled. This surge has led to lower regional spot prices for natural gas and increased demand for new pipeline infrastructure to reach broader markets.

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In addition to Matterhorn, three other major pipeline projects are underway:

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Apex Pipeline: With a capacity of 2.0 Bcf/d, this pipeline will carry natural gas from the Permian Basin to Port Arthur, Texas. Targa Resources, the operator, anticipates the pipeline will be operational by 2026.

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Blackcomb Pipeline: Designed to move 2.5 Bcf/d of natural gas from the Permian Basin to Agua Dulce, Texas, this pipeline is expected to begin service in 2026, according to operator Whitewater Midstream.

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Saguaro Connector Pipeline: This pipeline will have a capacity of 2.8 Bcf/d, transporting natural gas from the Permian Basin to the U.S.-Mexico border. It will connect with the Sierra Madre pipeline in Mexico and is projected to start operations by 2027–2028.

Additionally, operators have announced other pipeline projects with a combined capacity of 7.0 Bcf/d. These projects aim to transport natural gas from the Permian Basin to demand centers in Mexico and along the Texas Gulf Coast, with expected start dates between 2025 and 2028.

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