Texas Sees Major Increase in Natural Gas Pipeline Capacity / 3 Major Projects 🚀🛢️🌟

In a significant development for Texas's natural gas sector, the Matterhorn Express Pipeline is set to boost the state's natural gas takeaway capacity starting this month. The new pipeline will have a capacity of 2.5 billion cubic feet per day (Bcf/d) and will transport gas from the Permian Basin to Katy, near Houston.
This addition comes as natural gas production from the Permian Basin has more than doubled since 2018, leading to a surplus that has driven down regional prices. To address this, three other pipeline projects are in development:
- Apex Pipeline: 2.0 Bcf/d capacity, moving gas from the Permian Basin to Port Arthur, Texas. Expected to start in 2026.
- Blackcomb Pipeline: 2.5 Bcf/d capacity, transporting gas to Agua Dulce in south Texas. Anticipated to be operational by 2026.
- Saguaro Connector Pipeline: 2.8 Bcf/d capacity, connecting the Permian Basin to the U.S.-Mexico border. Scheduled to begin service between 2027 and 2028.
These projects, along with others planned to transport gas to Mexico and the Texas Gulf Coast, aim to ease the current price pressures. Prices at the Waha Hub in Texas have been negative for nearly half of 2024, with the lowest recorded price at -$6.41 per million British thermal units (MMBtu) in August. The Matterhorn Express Pipeline is expected to alleviate some of this downward pressure, potentially narrowing the price gap between the Waha Hub and the U.S. benchmark Henry Hub.