(Oil Price) – ONEOK, Inc., MPLX LP, Whitewater, and Enbridge Inc. announced a new natural gas pipeline project to transport gas from the Permian Basin to the U.S. Gulf Coast. The Eiger Express Pipeline will be a 450-mile, 42-inch pipeline designed to transport up to 2.5 billion cubic feet per day of natural gas.
The project is a joint venture between the existing Matterhorn joint venture, which comprises the four companies, and ONEOK and MPLX, which hold additional direct stakes. WhiteWater will be responsible for the construction and operation of the pipeline, which is expected to be completed in mid-2028. The pipeline will transport natural gas from the Midland and Delaware basins in West Texas to the Katy area near Houston, Texas, with reserved capacity for deliveries to Corpus Christi.
This new pipeline project addresses the increasing natural gas production in the Permian Basin, which has grown significantly due to its status as a leading oil-producing region. Natural gas is produced as a byproduct of oil extraction in the basin, and a lack of sufficient pipeline capacity has, at times, led to constrained prices and flaring. The Eiger Express Pipeline is one of several projects aimed at alleviating this issue by increasing takeaway capacity and connecting the Permian’s supply to high-demand markets.
The pipeline is supported by firm transportation agreements with terms of 10 years or longer, according to the press release. These long-term contracts demonstrate strong market demand for the project’s capacity.
“This important infrastructure project is needed to provide additional transportation capacity out of the highly productive Permian Basin,” said Pierce H. Norton II, ONEOK president and chief executive officer. He added that the pipeline’s strategic location will connect it to growing natural gas demand markets, which are driven by increasing electricity generation and international demand for liquefied natural gas exports.
The Eiger Express Pipeline is part of a broader trend of midstream companies investing in new infrastructure to support rising U.S. energy production. These projects are crucial for ensuring that the supply from key basins can reach domestic and international markets, particularly with the growth of U.S. liquefied natural gas exports. The completion of this pipeline is contingent on obtaining customary regulatory approvals.
By Michael Kern for Oilprice.com
