Matterhorn NatGas Pipeline Ramps Up Faster Than Expected

The Matterhorn Express natural gas pipeline has exceeded expectations since its ramp up on Oct. 1 for deliveries to interstate systems owned by Kinder Morgan, Williams and Enbridge.

Hart Energy Staff

The Matterhorn Express Pipeline, which ramped up transmission of Permian Basin natural gas on Oct. 1, eclipsed 1.2 Bcf on Oct. 18, surpassing expectations of analysts at East Daley Analytics.

Matterhorn, a joint venture (JV) of Whitewater MidstreamEnLink Midstream (recently acquired by ONEOK), Devon Energy and MPLX, began deliveries to its third interstate pipeline on Oct. 15, East Daley said. Kinder Morgan鈥檚 NGPL joined Williams Cos.鈥� Transco and Enbridge鈥檚 Texas Eastern (TETCO) pipelines in receiving gas.

鈥淭he ramp on Matterhorn is happening at a faster clip than [East Daley] modeled in the 鈥楶ermian Supply & Demand Forecast,鈥欌€� research analyst Ian Heming wrote in a research note. 鈥淣otably, northbound flows from the Permian have only decreased 200 MMcf/d since Matterhorn began delivering gas on Oct. 1, based on pipeline electronic bulletin boards we monitor.

NGPL posted initial flows of 165 MMcf/d, Heming wrote. The three interconnecting pipelines have a total capacity of more than 1.4 Bcf/d, or about 57% of 42-inch Matterhorn鈥檚 nameplate capacity of 2.5 Bcf/d, he said.

However, Heming raised the possibility that Matterhorn may be ramping even faster. He noted that the Gulf South pipeline鈥檚 Coastal Bend interconnect saw its flows jump 70% to average 462 MMcf/d through mid-October, compared to its September average of 271 MMcf/d. The interconnect set its own record of 567 MMcf/d on Oct. 18.

While the quick ramp is welcome news for owners of the three interstate systems, 鈥渋t鈥檚 also good for the Permian industry at large, lending confidence in our forecast for oil and gas growth,鈥� Heming wrote.

East Daley expects Matterhorn鈥檚 presence in the Permian to boost fourth-quarter crude production by 150,000 bbl/d to 200,000 bbl/d. Its 2025 growth forecast is 350,000 bbl/d.

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This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you鈥檙e experiencing any technical problems, please contact our customer care team.

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Matterhorn NatGas Pipeline Ramps Up Faster Than Expected

The Matterhorn Express natural gas pipeline has exceeded expectations since its ramp up on Oct. 1 for deliveries to interstate systems owned by Kinder Morgan, Williams and Enbridge.

Hart Energy Staff

The Matterhorn Express Pipeline, which ramped up transmission of Permian Basin natural gas on Oct. 1, eclipsed 1.2 Bcf on Oct. 18, surpassing expectations of analysts at East Daley Analytics.

Matterhorn, a joint venture (JV) of Whitewater MidstreamEnLink Midstream (recently acquired by ONEOK), Devon Energy and MPLX, began deliveries to its third interstate pipeline on Oct. 15, East Daley said. Kinder Morgan’s NGPL joined Williams Cos.’ Transco and Enbridge’s Texas Eastern (TETCO) pipelines in receiving gas.

“The ramp on Matterhorn is happening at a faster clip than [East Daley] modeled in the ‘Permian Supply & Demand Forecast,’” research analyst Ian Heming wrote in a research note. “Notably, northbound flows from the Permian have only decreased 200 MMcf/d since Matterhorn began delivering gas on Oct. 1, based on pipeline electronic bulletin boards we monitor.

NGPL posted initial flows of 165 MMcf/d, Heming wrote. The three interconnecting pipelines have a total capacity of more than 1.4 Bcf/d, or about 57% of 42-inch Matterhorn’s nameplate capacity of 2.5 Bcf/d, he said.

However, Heming raised the possibility that Matterhorn may be ramping even faster. He noted that the Gulf South pipeline’s Coastal Bend interconnect saw its flows jump 70% to average 462 MMcf/d through mid-October, compared to its September average of 271 MMcf/d. The interconnect set its own record of 567 MMcf/d on Oct. 18.

While the quick ramp is welcome news for owners of the three interstate systems, “it’s also good for the Permian industry at large, lending confidence in our forecast for oil and gas growth,” Heming wrote.

East Daley expects Matterhorn’s presence in the Permian to boost fourth-quarter crude production by 150,000 bbl/d to 200,000 bbl/d. Its 2025 growth forecast is 350,000 bbl/d.

Comments

Add new comment

This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.