Permian production surged to new record highs, averaging 23.7 Bcf/d, with production receipts on El Paso Pipeline rebounding after being reduced the week prior. The high production figures are the result of debottlenecking in the basin. The Gulf Coast Express Expansion began service in mid-June adding 0.57 Bcf/d of additional takeaway capacity for the basin and Hugh Brinson Phase 1 followed at the beginning of September adding 1.7 Bcf/d. Production in September averaged just over 23.5 Bcf/d, up 0.4 Bcf/d month-on month and up nearly 1.6 Bcf/d since Gulf Coast Express came online. See the orange line in chart below showing new highs in Permian supply. We forecast that production will continue to climb, heading towards 24 Bcf/d this winter. Also, work is ongoing on Blackcomb Pipeline, which will add an additional 2.5 Bcf/d of capacity by the end of the year. However, while production growth is boosted from the new takeaway capacity we do not expect it will fully keep pace with this rapid buildout. The basin will remain unconstrained for years to come, especially given further buildout later this decade.
Source: RBN NATGAS Appalachia, Wood Mackenzie
