The Daley Note

Matterhorn Gas is Coming Your Way

Written by Ian Heming | Nov 15, 2024 1:00:00 PM

Matterhorn Express Pipeline has quickly ramped gas volumes to the Katy hub outside Houston thanks to new pipeline interconnects. Matterhorn is now delivering ~1.4 Bcf/d to five interstate systems East Daley monitors, reaching many of the largest US demand centers.

Matterhorn started moving natural gas on October 1 from the Waha hub to Katy, providing a new outlet for growing Permian Basin production. Total flows to interstate pipes passed 1.5 Bcf/d last Wednesday (November 6) and have held near 1.4 Bcf/d this week, according to IIR Energy pipeline data (see figure). We suspect Matterhorn is also delivering gas to Enterprise’s (EPD) Texas intrastate system near Katy.

Matterhorn recently added two new meters in Wharton County, TX connecting to Gulf South Pipeline and Energy Transfer’s (ET) Trunkline Pipeline. The Gulf South meter started service on October 21, and the Trunkline meter began receiving gas at the start of November.

Other systems taking gas from Matterhorn include Natural Gas Pipeline of America (NGPL), Texas Eastern Transmission (Tetco), and the Transcontinental Gas Pipe Line (Transco). Collectively, the five pipelines connect to markets from the Southeast and Midwest to the Northeast.

The new Gulf South interconnect has a design capacity of 750 MMcf/d, and Trunkline can receive up to 245 MMcf/d. The Gulf South meter has been slow to ramp, while deliveries to Trunkline increased to ~177 MMcf/d this week. Matterhorn now has 2.42 Bcf/d of capacity across five interstate interconnects, nearly matching its 2.5 Bcf/d capacity.

See East Daley’s Permian Basin S&D Report and Houston Ship Channel S&D Report for more information about market impacts from the Matterhorn pipeline. – Ian Heming Tickers: EPD, ET.

 

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