The newest natural gas pipeline out of the Permian Basin is fully subscribed after 10 months of operations, according to a market analyst’s report.
The Matterhorn Express now has 13 contracted shippers, primarily made up of Permian operators. The pipeline has a combined 2.061 Bcf/d under contract, up from 1.865 Bcf/d at the end of 2024, according to an East Daley Analytics study released Aug. 19.
The contracted volumes match the pipeline’s current 2.0 Bcf/d capacity. Most of the contracts run through 2034, East Daley said.
The Matterhorn Express started commercial operations around the beginning of October 2024.
The pipeline, a joint venture operated by WhiteWater Midstream, is designed to deliver up to 2.5 Bcf/d of natural gas from the Midland and Delaware basins to processing facilities in Southeast Texas.
The owners are expected to add another 500 MMcf/d of capacity through compression improvements by the end of year, according to East Daley.
In 2024, gas-to-oil ratios (GORs) in the Permian Basin rose to the point of causing negative gas prices at the Waha Hub for weeks at a time. Though Matterhorn has improved egress from the basin, production continues to place downward pressure on prices coming out of the region, even as natural gas demand continues to ramp up for LNG production and electrical generation.
Several other pipeline projects are underway in the Permian to increase egress as GORs continue to climb. WhiteWater Midstream reached a final investment decision (FID) on the 2.5-Bcf/d Blackcomb Pipeline in July 2024. Kinder Morgan announced an FID on a 500-MMcf/d expansion of the Gulf Coast Express pipeline one month later. Energy Transfer hit FID on the 2.2-Bcf/d Hugh Branson Pipeline in December.
Several other pipeline projects are under development but have not yet reached FID.