Production in the Permian Basin has grown by over 1.4 Bcf/d year-on-year supported by Matterhorn Pipeline’s startup. However, exit capacity in the basin is already tight, especially in the context of spring pipeline maintenance, as evidenced by the negative price pressure the basin has experienced this month. RBN expects supply to average 21.5 Bcf/d this year and grow to 22.8 Bcf/d in 2026 with additional pipeline takeaway capacity from the Gulf Coast Express compressor expansion, Blackcomb Pipeline and the Hugh Brinson Pipeline, all of which are due online in 2026.
Featured Articles
- Blog
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.
- Blog
Hugh Do You Love? - 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.
- Analyst Insight
Permian Gas Outflows Constrained as Cash Prices Languish
Prices remain negative for gas in the Permian basin, as outflows from the region are constrained, particularly on El Paso.
