Southbound flows on Natural Gas Pipeline of America (NGPL) from Carthage to the Houston Ship Channel fell from an average of 1.2 Bcf/d in September to just 200 MMcf/d on October 22. East Daley attributes the decline to displacement from new inbound supply on Matterhorn Express Pipeline from the Permian Basin.
Matterhorn began delivering natural gas on October 1 from the Permian to pipelines near Katy on the Texas Gulf Coast. Owned by Kinder Morgan (KMI), NGPL has a 737 MMcf/d interconnect with Matterhorn in Wharton County, TX. The meter has averaged 600 MMcf/d of receipts since October 16, the same day when southbound flows on NGPL fell by nearly 500 MMcf/d.
In the Houston Ship Channel Supply & Demand Report, EDA has anticipated some flows backing up into East Texas as more Permian gas moves to the Texas coast. New demand will come from projects like the Corpus Christi Stage 3 expansion in 2025. But until new LNG expansions start, additional inbound Permian flows will need to displace supply from elsewhere.
We have observed declines previously in NGPL southbound flows when Freeport LNG has been out of service, reducing demand in the Houston market by up to 2 Bcf/d. Now we see a new dynamic where oversupply, rather than reduced demand, is causing displacement of Haynesville supply. – Oren Pilant Tickers: KMI.
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