The Matterhorn Express Pipeline has started initial flows from the Permian Basin, adding 2.5 Bcf/d of natural gas takeaway capacity and setting the stage for relieving a supply glut that has sent Waha prices below zero since the spring.
Matterhorn is online, moving little bits of gas and coming online in a real way over the next month or two,” Permian Resources Corp. Co-CEO Will Hickey said Tuesday at the Barclays 38th Annual CEO Energy-Power Conference.
Matterhorn, a 42-inch diameter, 490-mile pipeline, is designed to move Permian supply to the Katy hub near Houston and help to clear bottlenecks keeping associated gas in West Texas. Exploration and production (E&P) companies developing oil and gas in the Permian can weather negative gas prices.
Exacerbating oversupply, Hurricane Beryl, which came ashore on the Texas coast in July, delayed the pipeline’s startup. The storm threw off coordination between output and capacity, leading to a long stretch of negative Permian benchmark Waha cash prices.
Waha pricing today has been about as bad as it’s ever been over the last few weeks,” Hickey said. The hub sank to an all-time average low of negative
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