April 5, 2023 – Natural Gas Intelligence
Blackfin Looking to Debottleneck Katy Hub as More Permian Natural Gas Flows East
By Jeremiah Shelor
A proposed Texas intrastate extension of the Matterhorn Express Pipeline could help preserve stronger pricing at the Katy and Houston Ship Channel benchmarks as more natural gas volumes flow from the Permian Basin, according to analysts.…
…“Given the size of the planned pipeline, it seems likely that Waha gas prices and basis are set to see better days by late 2024, but there will almost certainly be rough patches between now and then,” RBN Energy LLC analyst Jason Ferguson wrote as part of the firm’s outlook for Permian markets in 2023.
Affordable Permian supplies remain an enticing option for operators contemplating investments in LNG export opportunities along the Gulf Coast, Ferguson noted.
“The massive spread between the price of Permian gas and the markets primarily served on the margin by LNG in Europe and Asia” creates a positive investment for new liquefied natural gas export projects, he said.
“All those LNG projects are looking for supply, and most have identified the Permian as a key supply source,” Ferguson said. “Now they just need the pipelines to connect Point A to Point B, linking Waha to their terminals.”