Matterhorn Pipeline Ramps Up Natural Gas Flow, Lifts Waha Prices
(P&GJ) — The Matterhorn Express Pipeline has started transporting gas into pipelines near Katy, marking the long-awaited launch of the Permian project. This week, Waha prices surged following the new pipeline's opening, although Permian gas prices remain low, according to East Daley Analytics.
On Oct. 1, Matterhorn began flowing gas through new interconnections with Williams’ (WMB) Transcontinental Gas Pipe Line (Transco) and Enbridge’s (ENB) Texas Eastern Transmission (TETCO) systems in southeastern Texas. The pipeline delivered 180 MMcf/d at Transco’s Clarks Branch receipt point in Wharton County and 137 MMcf/d at TETCO’s Hillboldt Road interconnect in Austin County, as noted on the pipelines’ electronic bulletin boards. Natural Gas Pipeline of America (NGPL) has also established a Matterhorn receipt point near Katy but has not yet begun gas flow.
Operated by WhiteWater Midstream, the 42-inch pipeline spans approximately 580 miles from the Waha hub in West Texas to Katy, just outside Houston. On Tuesday, Waha prices jumped by 34 cents to $0.45/MMBtu and further increased to $0.62 on Wednesday, reflecting positive market sentiment. Meanwhile, Permian gas prices have often traded at negative values since August due to full egress pipes and extended maintenance on Kinder Morgan’s (KMI) El Paso system.
East Daley Analytics anticipates a rise in oil and gas supply in the Permian region following the launch of Matterhorn. The firm projects gas production in the Permian will increase by 1.6 Bcf/d in 2024, while oil production is expected to grow by 150 Mbbl/d, reaching 6.25 MMbbl/d by year-end 2024, according to the latest forecasts from Energy Data Studio. Leading Permian producers, including Chevron (CVX), ExxonMobil (XOM), Matador Resources (MTDR), and Vital Energy (VTLE), have also indicated production growth for the fourth quarter of 2024, bolstering this optimistic outlook.
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