Enverus Intelligence Research last week released its latest forecasts of natural gas pipeline capacity and restraints for the Permian Basin. Jason Feit, author of the report, said June 4, “EIR’s new report shines a light on gas takeaway and shows how growing gas output in the Permian, a key producing area for the U.S., may be at risk if more pipelines aren’t soon built… Currently close to a quarter of EIR’s forecast of Permian total gas production for 2030 is at risk due to lack of existing and approved infrastructure to transport gas to consuming markets.”
Feit said the Matterhorn Express pipeline will provide temporary alleviation in the Permian, “but by 2026 more pipe is needed… There are four proposed projects that could help fill the required capacity. However, they are all yet to reach FID (final investment decision).”
Factoring in both planned and unplanned maintenance events, Enverus said, the result is an extremely tight market culminating in ongoing price volatility.