Enbridge (ENB) on Sept. 15 launched a non-binding open season for its proposed West Texas Express, adding another potential outlet for growing Permian Basin natural gas supply.
The proposed 42-inch intrastate line would extend more than 150 miles from the Waha hub to near El Paso, with initial capacity of up to 2 Bcf/d. The open season runs from Sept. 10-25. ENB is targeting a 4Q29 in-service date if the open season is successful.
Unlike most recent Permian takeaway projects targeting the Gulf Coast, West Texas Express would move supply west toward West Texas, Mexico and the Southwest (see map at right from Enbridge). ENB specifically cites power generation, utilities and industrial users, including data centers, as potential customers. The proposed route could provide Permian gas for new gas-fired generation supporting data centers around El Paso and elsewhere along the corridor.
West Texas Express could also provide another pathway for Permian gas into Mexico. Enbridge’s proposal includes laterals into Hudspeth County and potential connections with new or existing delivery meters along the US-Mexico border.
In the longer term, growing Mexican demand could include LNG exports. Sempra Energy (SRE) recently completed ECA LNG Phase 1, and this pipe could provide supply for the 12 Mtpa ECA LNG Phase 2 project if it moves forward. SRE has previously identified the Permian as a potential primary supply source for Phase 2.
The project could also increase connectivity between Waha and Western pipeline infrastructure, including Energy Transfer’s (ET) Desert Southwest expansion. West Texas Express would originate at Waha, providing access to the numerous systems already converging at the hub. ENB said the pipeline can be designed to connect with existing infrastructure based on customer requests received during the open season, potentially creating connections with systems serving the Southwest. This could complement Transwestern Pipeline’s Desert Southwest expansion, which is also targeting additional Permian supply moving toward New Mexico and Arizona, while providing another outlet for Waha gas. – Alec Gravelle Tickers: ENB, ET, SRE.
Can Crude and NGL Markets Keep Pace with the US LNG Boom?
Rising US LNG feedgas demand has the potential to float all boats — but only if crude oil and NGL markets can support the growth.
Reaching nearly 26 Bcf/d of LNG feedgas demand by the end of 2027 will require producers to drill aggressively across the Permian, Haynesville and Northeast. In the Permian especially, that growth depends on steadier crude prices, to give producers the confidence to commit capital, subscribe to new pipeline capacity and fill the infrastructure midstream companies must build.
Join East Daley Analytics on Wednesday, Sept. 30 as we examine the cross-commodity conditions required to keep the LNG growth story on track:
- What crude price environment will support sustained drilling and pipeline investment?
- Could Permian crude constraints limit associated gas production?
- Where could NGL processing, takeaway and export bottlenecks emerge?
- Which companies are best positioned to capitalize?
LNG demand may be the rising tide — but crude and NGL markets will determine whether all boats can rise with it.
Join East Daley Analytics on Sept. 30 at 10:00 am MT for a discussion at the intersection of energy. Click here to reserve your spot today.
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