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

Egypt in Talks with Foreign Companies Over Long-Term LNG Purchases, Sources Say
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Egypt is in talks with U.S. and other foreign companies to purchase ... Read More
INEOS and GNFC Sign a Memorandum of Understanding to Build a New World Scale Acetic Acid Unit in India
11.21.2024 - NEWS
November 21, 2024 [INEOS]- INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals L... Read More
Peru's State Oil Firm Could Open to Private Investors in 2025, Chairman says
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Peru’s indebted state-run oil firm could consider offering a ... Read More
China Crude Oil Imports Set for November Rebound, But It's Price not Demand
11.21.2024 - NEWS
November 21, 2024 [Reuters]- China’s crude imports are on track to rebound in November to t... Read More