Natural gas pipeline from Permian to Katy moves forward

2022-05-28 00:39:10 By : Mr. Kevin Shu

With the right mix of industry initiative and government regulation, the pipeline industry can deliver environmental progress without resorting to new taxes, the authors argue.

A 490-mile pipeline set to carry natural gas from the Permian Basin to Katy is one step closer to becoming a reality, said the companies involved in its construction. 

Devon Energy, along with the natural gas transmission company EnLink Midstream, Marathon Petroleum’s midstream company MPLX, and infrastructure company WhiteWater said they reached a final investment decision for the Matterhorn Express Pipeline, according to a statement from WhiteWater. The decision was made after an adequate number of shippers signed onto transportation agreements. 

The Matterhorn is expected to be able to move up to 2.5 billion cubic feet per day of natural gas from Waha, Texas in the Permian Basin to Katy, Texas in the greater Houston area. To power a regular home for one day it would take around 325 cubic feet of natural gas.  

“WhiteWater is excited to partner with EnLink, Devon, and MPLX to develop incremental gas transportation out of the Permian Basin as production continues to grow in West Texas,” said White Water CEO Christer Rundlof in a statement. “Matterhorn will provide premium market access with superior flexibility for Permian Basin shippers while playing a critical role in minimizing flared volumes.”

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Multiple oil and gas drilling companies plan to use the pipeline, which will hook up to some of the Permian’s Midland Basin processing facilities. It will also include a direct connection to WhiteWater and MPLX’s Agua Blanca Pipeline that serves nearly 20 gas processing in the Permian’s Delaware Basin. 

As investors and the public continue to demand action on climate change, some have focused on ending a process called flaring. That’s when a company burns off gas that it can’t profitably get to market. It happens mostly when companies drill for oil, which also produces associated gas. They might burn off that gas if they don’t have infrastructure to get it to market, or don’t want to deal with it. 

Flaring sends harmful greenhouse gasses, namely methane, into the atmosphere. To reduce flaring, companies have said in the past they need more pipeline capacity to transport that gas to places like Houston. Environmental advocates have questioned that argument, saying most existing pipelines are not running at capacity. 

“Right now, if you're flaring and if you're doing routine flaring, you're doing it because you don't want to invest in the gathering system to get your gas to a pipeline, or you just don't care,” said Colin Leyden with the Environmental Defense Fund, which tracks and studies flaring in the Permian. 

The Matterhorn Express Pipeline will still need some regulatory approvals, the companies said. If those go through the pipeline is expected to start operating in the second half of 2024. 

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Kyra Buckley is an energy reporter for the Houston Chronicle, specifically covering the region's oil and gas companies.

Prior to coming to the Chronicle, Kyra covered energy at Houston Public Media for two years. She graduated from the University of Oregon.