Energy Transfer indicated in its earnings call that its proposed Warrior Pipeline to move natural gas from the Permian Basin closer to demand centers in Texas might reach a final investment decision (FID) soon. Earlier this year, in the heat of basketball March Madness, we wrote Come Dancing describing the need for more exit capacity from the Permian as gas supply in the oil-focused region will continue to increase in the coming years. We also gave our list of pipeline projects that were most likely to reach FID. Since then, several projects on that list have been checked off. The first to reach FID was Blackcomb, which fell into our “Unannounced Pipeline to South Texas” bucket by bringing a planned 2.5 Bcf/d to Agua Dulce. Next, Kinder Morgan announced last month that it had reached FID on its plan to expand the Gulf Coast Express pipeline by 570 MMcf/d. Now Energy Transfer is saying it is “very close” to reaching FID on Warrior in the coming weeks.
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Come Dancing - Which Permian Gas Pipeline Projects Have the Best Chance to Cut Down the Nets?
It’s that time of year, folks! March Madness is upon us — time to reboot the office pool and fill out your brackets. And not just for the NCAA Tournament field announced Sunday night, but for the natural gas pipeline projects out of the Permian you think will make it to the Elite Eight or even the Final Four. Matterhorn Express is like the UConn of the bunch as the reigning men’s champ with a chance of repeating — it’s already under construction and slated to come online later this year — and the odds for a Gulf Coast Express expansion look mighty good too, just like record scorer Caitlin Clark and her Iowa Hawkeyes are hoping to build on last year’s run to the women’s championship game. And don’t forget Energy Transfer’s Warrior and Targa’s Apex! Their names alone suggest a fightin’ spirit and a desire to make it to the top. But as we all know from our past bets on the Big Dance, there’s no such thing as a sure thing, especially in the topsy-turvy world of midstream project development, and it’s entirely possible an unknown — the pipeline equivalent of a 16th seed — will be among those cutting down the nets. In today’s RBN blog, we discuss the need for new gas pipeline egress from the Permian and assess the pros and cons of the projects that have a bid.
Any Way You Want It - Gas Market Players Seek Optionality With New Gulf Coast Pipelines
Natural gas production in the Permian is still on a roll — increasing so fast that midstream infrastructure can barely keep up. But producers, marketers and shippers want more than new takeaway capacity. They also need to know that the pipeline systems they sign up with can reliably move their gas to markets where they can get the best price. Put simply, they are demanding optionality. In today’s RBN blog, we discuss the optionality provided by a WhiteWater Midstream-led joint venture’s (JV) expanding gas pipeline network in Texas, including a brand-new project between the Agua Dulce and Katy gas hubs that’s in the works.
Hugh Do You Love? Encore Edition - A New Entrant to Tackle the Permian's Dire Need for Gas Takeaway Capacity
Negative natural gas prices have been breaking hearts in the Permian Basin for many years, with pipeline development struggling to keep pace with rapid increases in associated gas production, but 2024 has shattered all previous records for the severity and length of negatively priced periods. The Matterhorn Express Pipeline, which started partial service at the beginning of October, is helping to stabilize the market for now, but with more production gains on the way, additional takeaway capacity will be needed. And after this year’s run of negative prices, producers have been willing to commit to new capacity.
