Texas Oil & Gas Association’s Post

𝙏𝙚𝙭𝙖𝙨 𝙈𝙖𝙩𝙩𝙚𝙧𝙝𝙤𝙧𝙣 𝙋𝙞𝙥𝙚𝙡𝙞𝙣𝙚 𝘼𝙘𝙩𝙞𝙫𝙖𝙩𝙚𝙙: 𝘼 𝙏𝙪𝙧𝙣𝙞𝙣𝙜 𝙋𝙤𝙞𝙣𝙩 𝙛𝙤𝙧 𝙋𝙚𝙧𝙢𝙞𝙖𝙣 𝙂𝙖𝙨 The Matterhorn natural gas pipeline, a crucial 490-mile conduit, has commenced initial gas movements from the Permian basin in West Texas towards the Gulf Coast, marking a significant stride in regional energy operations. According to Permian Resources, this pipeline is poised to transport up to 2.5 billion cubic feet of gas daily, alleviating longstanding bottlenecks that have plagued the Permian, where negative pricing at the Waha Hub has been a pressing issue. Energy analysts anticipate that the commencement of the Matterhorn will temporarily shift the market dynamics, giving shippers an upper hand as gas redirects from northern to southern routes, potentially stabilizing prices in the short term. However, challenges remain on the horizon, with projections suggesting increased production could again strain the pipeline's capacity by 2026. #EnergyIndustry #NaturalGas #TexasEnergy #MatterhornPipeline #PermianBasin https://lnkd.in/gVq5MPNm

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. This increase in pipeline capacity marks a crucial step in managing Texas's growing natural gas production and stabilizing regional prices. Stay updated with the latest insights by visiting xpylon.com. https://lnkd.in/dxVudWF8 #NaturalGas #Texas #Houston #EnergyTransition #Energy

Big news for the Permian Basin! 🌍🚀 The region's natural gas pipeline capacity is set to expand significantly as the Matterhorn Express Pipeline, with a capacity of 2.5 Bcf/d, begins service this month. This will help transport natural gas from the Permian Basin to Katy near Houston, Texas, alleviating local bottlenecks and opening access to new markets. With three more major pipeline projects—Apex, Blackcomb, and Saguaro Connector—set to add a combined 7.3 Bcf/d capacity by 2028, the Permian Basin is solidifying its role as a major energy hub. These expansions will meet the growing demand for efficient natural gas transportation, both domestically and across the U.S.-Mexico border. ⚡️ #PermianBasin #NaturalGas #PipelineCapacity #EnergyInfrastructure #MatterhornPipeline #USMexicoEnergy #EnergyExpansion #LNG #SustainableEnergy #OilAndGasIndustry

Permian Producers Eye Natural Gas Price Relief With Infrastructure Projects Heading Into Mexico Three new Permian Basin pipeline projects with a combined capacity of 7.3 Bcf/d could be online by 2027, according to the U.S. Energy Information Administration (EIA), allowing for West Texas natural gas to reach both coasts in Mexico.

The Matterhorn Express Pipeline that has been laid 580 miles from the Permian Basin to the Gulf Coast and is now gradually going online will help relieve the giant back-up of associated natural gas that has developed from the Permian Basin’s record oil production. “With the addition of 2.5 bcf/d in new egress capacity from the Permian Basin to Katy, Texas, the Matterhorn Express pipeline helps alleviate bottlenecks that have contributed to a prolonged discount on natural gas prices in the region,” TXOGA Chief Economist Dean Foreman, Ph.D. told the Odessa American. “This expanded access to higher-value markets should, in turn, narrow the price differential between the Permian and Henry Hub. “In the near term Matterhorn’s added capacity is likely to result in higher realized prices across the region, potentially spurring further investment and production, which could eventually require even more takeaway capacity.” Read more: https://lnkd.in/gkWfFFHW

As West Texas gears up for an electrifying future, PNM Resources is poised to power innovative investments in the region. The recent ERCOT planning initiative shines a spotlight on the Permian Basin, predicting a surge in demand far exceeding old forecasts — we're talking a colossal 40 GW over the next few years! What's truly electrifying is the anticipated growth from sectors beyond oil and gas. 🌱 This is not just a power surge; it's a diversification drive that spells opportunity. While PNM Resources awaits ERCOT's vital summer report, the buzz is undeniable. The prospect of injecting new investments into our Texas-New Mexico Power unit is tantalizing. Stay tuned as we prepare to navigate through this new era of planning with strategy and zest. The landscape of energy in West Texas is changing — and we're here for it! ⚡ #EnergyFuture #WestTexasGrowth #InnovationInvestment

Natural Gas Output from Appalachia, Haynesville Seen Falling Further into Early Summer Combined natural gas production from seven key Lower 48 plays is expected to ease lower in June, with declines from gas-weighted plays continuing to offset increasing associated output from the Permian Basin, according to updated projections from the U.S. Energy Information Administration (EIA).

The federal government is preparing to auction off public land in southeast New Mexico for oil and gas drilling in February 2025. This development could unlock new opportunities in the oil-rich Permian Basin, a region well-known for its abundant reserves. The auction covers parcels within Eddy County, further boosting New Mexico's energy production potential. However, environmental concerns and public opposition remain, with critics citing risks to local ecosystems and climate impacts. As investors and energy companies prepare for the auction, expect heightened debates around resource development and sustainability. Stay tuned for updates as the date approaches. #NewMexicoEnergy #OilAndGas #PermianBasin Read more: https://lnkd.in/e4zq_UrV

Negative Waha won’t deter Permian drilling, as highlighted in this NYT article by Rebecca Elliott: “This Texas Energy Is So Bountiful, They Pay You to Take It Away”. Matterhorn starting in a few months and the recent FID at Blackcomb to Agua Dulce will alleviate the problem. Assuming Blackcomb avoids material construction delays, effective Permian natural gas takeaway capacity will move north of 23.0 bcf/d by 2027. There's a risk to non-Permian regional producers, however, with 5 bcf/d of new Permian supply capacity on the horizon to the south and west of Houston. Delays in Rio Grande LNG’s development add to the complexity. For the full analysis and more insights email us at: [email protected]

“ProPetro Services has signed an agreement to provide electric hydraulic fracturing services to ExxonMobil operations in the Permian Basin over the next three years. Under the agreement, ProPetro will dedicate two of its Force SM electric hydraulic fracturing fleets to ExxonMobil, along with wireline and pumpdown services.” Are electric frac rigs the future of the Permian Basin? Read more here: https://lnkd.in/gJyHbPye #frac #fracsand #permian #fracfleet #pumpmoresand