A widely anticipated expansion of Matterhorn Express Pipeline appears to have started operations in early November, based on interstate pipeline flow samples monitored by East Daley Analytics.
After consistently delivering about 1.65 Bcf/d since June to the Katy market, Matterhorn flows jumped to as high as 1.95 Bcf/d in November. Pipeline operator WhiteWater was expected to add a 0.5 Bcf/d compression expansion to Matterhorn, and the sustained increase in interstate pipe deliveries suggests that expansion is now underway or completed.
Matterhorn was originally constructed with 2.0 Bcf/d of capacity. The WhiteWater joint venture had expected to bring the additional compression online sometime after the pipeline’s initial ramp, but the timing of that expansion was pushed to 4Q25. The project is critical to opening more egress for Permian Basin gas production and providing some relief for low Waha hub prices.
Deliveries to interstate interconnects and the Tres Palacios storage hub have seen an uptick through November, holding above 1.8 Bcf/d since Nov. 7 (see figure). The flow sample also declined early in the month and at the end of October, suggesting maintenance work to bring the new compression online.
In August, East Daley reported that Federal Energy Regulatory Commission (FERC) 549D data showed the pipeline was fully subscribed in 1Q25, listing 2.0 Bcf/d of contracts from 13 different shippers. Those contracts were unchanged in the latest 2Q25 data. Matterhorn connects with both inter- and intrastate pipelines, meaning that only some of the pipeline’s flows are visible on electronic bulletin boards. With 1.65 Bcf/d of flows going to interstate pipes, this left an implied ~350 MMcf/d of deliveries to Texas intrastate lines, or about 18% of the 2.0 Bcf/d capacity.
If the pipeline maintains a similar flow ratio between interstate and intrastate systems, then interstate deliveries could reach as high as 2.05 Bcf/d when the expansion is completed. However, there is no guarantee that contracted volumes interconnects for the expansion will reach the full 2.5 Bcf/d or are more heavily weighted toward intrastate interconnects.
In either case, the Matterhorn expansion will be welcomed by Permian producers. Gas pipelines out of the basin are running effectively full, and no new capacity will be made available until mid-2026, when Kinder Morgan (KMI) expects to start a 570 MMcf/d compression expansion of Gulf Coast Express Pipeline.
East Daley is updating our monthly Permian Supply & Demand model to account for these recent developments and will project Matterhorn flows at 2.5 Bcf/d beginning in November. – Ian Heming Tickers: KMI.
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