Texas Matterhorn natgas pipe moving some gas
The Matterhorn natural gas pipeline in Texas has moved small amounts of gas from the Permian basin in West Texas toward the Gulf Coast, executives at U.S. energy company Permian Resources said earlier this week.
The Matterhorn is the biggest gas pipe under construction that is capable of moving gas that has been trapped in the Permian basin, causing prices at the Waha Hub in West Texas to turn negative a record number of times this year.
As more gas flows through the Matterhorn, analysts and executives at Permian Resources said Waha gas prices should more consistently price in positive territory.
"The Matterhorn is online and moving little bits of gas," Permian Resources executives said, noting the pipe should be "moving a real amount of gas in the next few months and we're hoping to at least see Waha turn positive."
Gas prices at the Waha hub have averaged below zero a record number of days so far in 2024, including an all-time low of –$4.80/MMBtu on Aug. 29, as pipeline and other constraints trap gas in the nation's biggest oil-producing basin. That was the 10th time Waha prices averaged below zero in August and was a record 33rd time so far in 2024.
Waha prices first averaged below zero in 2019. It happened 17 times in 2019, six times in 2020 and once in 2023.
"Spot Waha has not been a fun place to sell gas over the past few months," executives at Permian Resources said at the conference. "We would like to sell gas at more than zero."
In the past, Matterhorn Express projected the 490-mi (789-km) pipe capable of moving up to 2.5 Bft3d of gas from the Permian to the Gulf Coast, could enter service in the third quarter of 2024.
Matterhorn Express is a joint venture between units of WhiteWater, EnLink Midstream, Devon Energy and MPLX, according to WhiteWater's website.
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