The Matterhorn Express Pipeline has initiated the transportation of natural gas to the Transco pipeline, expanding the midstream infrastructure within the Permian Basin in Texas, according to Bloomberg.
This milestone signifies a significant progression in alleviating the pipeline capacity constraints that have impacted natural gas pricing in the Permian Basin, particularly at the Waha hub.
The insufficient pipeline connections between the Permian Basin and the Gulf Coast and Southern California have led to instances where prices at Waha have turned negative, resulting in producers effectively paying to dispose of the gas.
At present, Matterhorn is transporting approximately 0.3 billion cubic feet per day (mmcf/d) into Transco.
With a design capacity of 2.5 billion cubic feet per day (bcf/d) and spanning roughly 580 miles (933 km), the new pipeline will facilitate the transfer of gas from the Waha hub in West Texas to the Houston area, linking Transco with other pipelines.
This advancement will improve the distribution of natural gas to domestic consumers, including liquefied natural gas (LNG) export facilities on the Gulf Coast.