Segments of the Matterhorn pipeline began flowing and nominating natural gas at the beginning of October 2024. While Matterhorn is an intrastate pipeline in Texas and does not report pipeline flow data, the pipeline does interconnect on two interstate pipelines where the pipeline flow data is visible. The 2 interconnecting interstate pipelines are Transco and TETCO.
Both Matterhorn interconnects are flowing natural gas at near maximum capacity. The sum of maximum capacities on the two interconnects is around 700,000 MMBtu / day. Does this mean that the Matterhorn pipeline is suddenly increasing production in West Texas by 700,000 MMBtu / day? Probably not as interconnect points often double count natural gas pipeline flows. One other way to determine how much additional net production West Texas is receiving from the commencement of the Matterhorn pipeline is to look at production pipeline flow data in South Texas. Matterhorn pipeline is going to significantly displace some natural gas production in South Texas. South Texas natural gas production is down about 0.2 Bcf/d since Matterhorn came online.
Therefore, we estimate that as of October 2024, Matterhorn pipeline has caused West Texas natural gas production to increase by 0.2 Bcf/d based on the amount of displacement of South Texas natural gas production.
Update to the Daily Production Model
Given the above we are updating our Daily Production model for West - TX to add 0.20 bcf/d beginning in October 2024. This change is now live, we will continue to monitor and make adjustments as needed.
