The Uinta Basin may fly under the radar of some analysts, yet the area is drawing investments from two of the leading midstream companies. Williams (WMB) and Kinder Morgan (KMI) are each pursuing a series of projects to manage growing gas production as steady drilling fills infrastructure in northeastern Utah.
Producers are currently running 11 rigs in the Uinta Basin, and rig counts have ranged between 9-14 so far in 2024, according to East Daley’s Energy Data Studio (see figure). Operators show growing interest in targeting the Uinta’s waxy crude benches. But these wells also produce associated gas, while the Uinta has a separate gas window that also attracts investment.
WMB’s MountainWest Pipeline started service on its 113 MMcf/d Uinta Basin Expansion (UBE) project in 3Q24. The expansion adds capacity from the BrundageMountain meter station to the Chipeta processing plant owned by Western Midstream (WES).
Since starting the expansion, WMB has closed a binding open season for a second UBE project to add 66 MMcf/d of capacity. And on November 12, MountainWest opened a non-binding open season for a third expansion. That project would increase westbound system capacity by 250 MMcf/d to Kern River Pipeline, essentially a takeaway route for Uinta supply.
Kinder Morgan also anticipates growth in the Uinta. In its 2Q24 earnings report, KMI said it had executed definitive agreements to proceed with the Altamont Green River Pipeline. The 150 MMcf/d pipeline will connect gas produced on KMI’s Altamont G&P system to the WES - Chipeta plant (see map).
The Altamont system can process 110 MMcf/d and is running nearly full, according to system data in Energy Data Studio. The Altamont system serves many of the Uinta’s leading operators, including XCL Resources (now SM Energy), Crescent Energy, and Uinta Wax Operating. These producers have steadily run 7-8 rigs on Altamont in 2024. EDA models gas production exceeding system capacity by early 2025 on the KMI system, creating a need for the new pipeline.
The WES – Chipeta plant can access the MountainWest, Colorado Interstate (CIG) and Wyoming Interstate (WIC) systems. Chipeta has a processing capacity of 790 MMcf/d but is only running at ~200 MMcf/d, making it a logical plant for KMI to direct gas. See East Daley’s West Coast Supply & Demand Report for more information. – Ian Heming Tickers: KMI, WES, WMB.
Year-End Sale! Sign up for the Macro S&D
We’re holding a sale on our Macro S&D monthly and yearly subscriptions to close out 2024. Buy online and gain access to our monthly Macro Supply & Demand and LNG Tracker & Export Stack, as well as our archived reports and data sets from previous months. The Macro connects producers through processing to pipelines, for a complete value chain analysis by basin. Gain a comprehensive macro-view with visibility into micro constraints and relationships. Access to our Macro Supply & Demand includes a monthly macro report, balanced and unbalanced data sets, LNG export data set, and three dashboards in Energy Data Studio to customize your view. Learn more here.
Request the Dirty Little Secrets 2025 Written Report
A full written report will be available in January for the 2025 Dirty Little Secrets. This report will go beyond the webinar discussions to provide a deeper analysis of the topics covered. Learn how commodities are intertwined and identify opportunities for profit from market dislocations. Request a copy of the Dirty Little Secrets report.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.