Permian Gas Starts Flowing Via Matterhorn Pipeline in Texas
[Stay on top of transportation news: Get TTNews in your inbox.]
Matterhorn Express Pipeline has begun transporting natural gas into Williams Cos.’s Transco pipeline, a long-awaited addition to midstream infrastructure serving the Permian Basin.
Matterhorn is moving about 0.3 billion cubic feet per day into Transco, an established pipeline that connects near Katy, Texas, traders said Oct. 1. U.S. natural gas futures fell 1.2% as of 8:52 a.m. New York.
Matterhorn has a design capacity of 2.5 billion cubic feet per day. It stretches about 580 miles to take gas from the Waha hub in West Texas to the Houston area, connecting Transco and other pipelines, ultimately serving domestic consumers including liquefied natural gas export plants on the Gulf Coast.
The Permian is the most prolific U.S. oil patch and natural gas output is a plentiful — and growing — byproduct of fracking there. But until now, a lack of pipeline capacity connecting it with the Gulf Coast and Southern California has meant prices at Waha have at times gone negative — in others words, producers have effectively been paying to get rid of the fuel.
A representative for Whitewater Midstream, which operates Matterhorn, didn’t immediately respond to a request for comment.
Want more news? Listen to today's daily briefing below or go here for more info:
