Texas Matterhorn Pipeline Starts Moving Gas Out of the Permian
09.06.2024 By Tank Terminals - NEWS

September 06, 2024 [Oilprice]- The Matterhorn natural gas pipeline in Texas has begun moving small amounts of gas from the Permian basin in West Texas toward the Gulf Coast, energy executives at U.S. oil and gas company Permian Resources (NYSE:PR) have revealed. Currently under construction, the Matterhorn will move large volumes of gas that has been trapped in the Permian basin, causing prices at the Waha Hub in West Texas to turn negative. According to executives at Permian Resources, Waha gas prices should more consistently price in positive territory as more gas flows through the giant pipeline.

 

“Spot Waha has not been a fun place to sell gas over the past few months. We would like to sell gas at more than zero,” Permian Resources has said. The 490-mile (789-km) pipe will be capable of moving up to 2.5 billion cubic feet per day (bcfd) of gas from the Permian to the Gulf Coast, and could enter service in the third quarter of 2024.

According to Maria Paz Urdaneta, a commodities analyst with East Daley Analytics, Matterhorn Express’ start-up will redirect Permian natural gas to South Texas and, for a brief window, shift market leverage from pipelines to shippers. The Matterhorn will also relieve pressure on Permian gas prices caused by the takeaway bottleneck. Permian pipes have run full since the spring, causing spot prices to turn negative multiple times in the basin so far in the current year. To wit, Waha traded at negative $1.23/MMBtu in the current week week, likely due to ongoing maintenance on Kinder Morgan’s (NYSE:lKMI) El Paso system. 

The analyst has also pointed out that early flows will primarily be displaced from northbound pipelines to the Midcontinent, including Kinder Morgan’s Natural Gas Pipeline of America and Berkshire Hathaway’s Northern Natural Gas Pipeline. However, the relief could be short-lived: Urdaneta has predicted that Permian Basin producers are likely to increase production once Matterhorn enters service, triggering more takeaway constraints that have sent natural gas prices into negative territory by the second half of 2026.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Qair to Install e-Methanol Plant at France's Le Havre Port
11.12.2024 - NEWS
November 12, 2024 [Renewables Now]- French independent renewable power producer Qair has won the ... Read More
COP29 - Indonesia to Host World's First Hybrid Green Ammonia Project
11.12.2024 - NEWS
November 12, 2024 [Antara News]- PT Pupuk Indonesia announced its Green Ammonia Initiative from A... Read More
Saudi Arabia Bets $10B on Green Hydrogen
11.12.2024 - NEWS
November 12, 2024 [Oil Price]- Saudi Arabia is reportedly preparing to unleash $10 billion in inv... Read More
Genzero and Trafigura Announce US$100M Expansion of the Brujula Verde Nature-Based Carbon Removals Project in Colombi
11.12.2024 - NEWS
November 12, 2024 [Storage Terminals Magazine]- Trafigura Group Pte Ltd, a leader in the global c... Read More