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SynMax Intelligence

New Permian Pipeline



Join us for our client-only Production Webinar  Friday 12/1 at 9am CST. We will discuss:
  • A retrospective analysis of our forecast accuracy over the past three months.
  • Updates to our long term oil and gas production forecast.
  • New regions for our short term forecast.
  • Live questions from our clients.


Click here to Register


The Matterhorn Express pipeline is a new Texas intrastate natural gas pipeline that should further increase production in the Permian region.  Matterhorn Express is a 580-mile-long pipeline with a nameplate capacity of 2.5 Bcf/d.  The pipeline goes from the northern edge of Pecos County on one leg and the middle of Martin County on the other leg, joins in Upton County, and then moves across central Texas eventually moving southeast until it ends in 2 legs at Wharton County and the edge of Katy near Houston, Texas.



The pipeline delivers natural gas from the Waha natural gas hub into the Houston Ship Channel natural gas hub.  The pipeline is expected to come online sometime during the 3rd quarter of 2024.  This is an attractive pipeline for Permian producers as it has already secured sufficient firm transportation agreements from multiple shippers.  The pipeline should also allow Permian producers to further expand associated natural gas production to accommodate the basin’s boom in oil production.

SynMax’s long term natural gas production model has built in a total of around 0.7 Bcf/d of incremental production gains from the 2nd quarter of 2024 to the 4th quarter of 2024 based on producer guidance in the Permian region.  Producers are now anticipating the production increase from this new pipeline and the fact that the capacity of Matterhorn Express is 2.5 Bcf/d further increases the upside potential to natural gas production.  Matterhorn Express should further collapse the Waha to Houston Ship Channel spread to close to variable costs, which would be between 7 to 15 cents per MMBtu.

 
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