Major natural gas pipeline projects are set to come online in the Permian Basin, promising to alleviate price pressures and increase takeaway capacity.

One such project is the Matterhorn Express Pipeline, with a capacity of 2.5 billion cubic feet per day (Bcf/d) expected to begin operations this month, transporting gas from the Permian Basin to Katy, near Houston, Texas. 

Developed by a joint venture including EnLink Midstream, Whitewater, Devon Energy, and MPLX, the new pipeline will boost the natural gas output from the Permian basin. 

The Permian Basin, known primarily for its growing oil production, has seen a substantial increase in natural gas output. This surge has led to lower regional gas prices, especially at the Waha Hub, where prices have dipped below zero for much of 2024.

To address the price challenges at Waha, several new pipeline projects are under development. The Apex Pipeline with an estimated capacity of 2.0 Bcf/d), Blackcomb Pipeline with 2.5 Bcf/d, and Saguaro Connector Pipeline, with a capacity of 2.8 Bcf/d, are expected to add a combined 7.3 Bcf/d capacity by 2027.

Additionally, pipeline operators have announced other projects with a total capacity of 7.0 Bcf/d designed to transport Permian gas to Mexico and the Texas Gulf Coast. These projects could come into service between 2025 and 2028.

With the increased takeaway capacity, the new pipelines are expected to relieve pressure on local prices and narrow the gap between the Waha Hub and Henry Hub. This development should bring much-needed stability to Permian producers and support more sustainable regional pricing dynamics.