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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Canadian energy company Enbridge Incorporated (Calgary, Alberta) said it's helping clear out the bottleneck in the Permian with a new pipeline meant to bring natural gas to the Gulf Coast.
Through a joint venture, the company said Tuesday it made a final investment decision (FID) on the Eiger Express Pipeline, which would support 2.5 billion cubic feet per day (Bcf/d) in natural gas from the Permian Basin.
Shale player ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma), which holds a minority interest in their Matterhorn joint venture, unveiled Eiger Express last week, describing the 450-mile, 42-inch pipeline as an integral part of the takeaway capacity from the Permian to support growing commitments for exports of liquefied natural gas (LNG).
WhiteWater Midstream (Austin, Texas) leads the Matterhorn joint venture alongside ONEOK, MPLX LP (Findlay, Ohio), part of Marathon Petroleum Corporation (Findlay), and Enbridge. Eiger, which will be among the longer networks in the region, is supported by 10-year transportation agreements. It could be completed by 2028.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for the project report.
The U.S. is already the world leader in natural gas production. The Energy Information Administration (EIA), part of the U.S. Department of Energy, expects total marketed natural gas production to increase by 3% from year-ago levels, supported by expected growth of around 2 Bcf/d from the Permian region alone.
"We expect marketed natural gas production will be generally unchanged next year, even though we expect falling oil prices will reduce production of associated natural gas, particularly in the Permian Basin," EIA analysts wrote in the Short-Term Energy Outlook report for August. "However, production declines will be muted as producers strategically position themselves to meet rising demand from several LNG projects that are set to enter service in late 2025 and 2026."
As basins mature, the gas-to-oil ratio changes and reservoirs such as the Permian tend to become gassier over time. The EIA expects Permian gas production to increase from 27.5 Bcf/d to 27.6 Bcf/d by next year, while total U.S. gas production declines from 116.8 Bcf/d to 116.7 Bcf/d.
Enbridge in its second quarter earnings release said it increased the capacity on its Traverse pipeline to the Gulf Coast from 1.75 Bcf/d to 2.5 Bcf/d, adding further support to U.S. LNG export commitments.
Hosting a dense network of pipelines spanning much of North America, Enbridge has said it's largely resilient from U.S. tariffs enacted since President Donald Trump returned to office in January.
Though energy trade was ultimately spared, Trump has imposed tariffs on aluminum and steel, complicating the U.S. supply chain as the nation doesn't make much of the type of steel used in oil and gas pipelines.
Canada, meanwhile, is looking to diversify its trade options outside of North America to insulate itself from the Trump tariffs. On Canada's west coast, the Aitken Creek storage facility is the only one in British Columbia, and Enbridge said it would add more capacity to support future deliveries of LNG from the province.
Subscribers can click here for a detailed plant profile of Aitken Creek.
Enbridge reported adjusted earnings of US$1.03 billion for the second quarter, compared with $907 billion during the same period last year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Through a joint venture, the company said Tuesday it made a final investment decision (FID) on the Eiger Express Pipeline, which would support 2.5 billion cubic feet per day (Bcf/d) in natural gas from the Permian Basin.
Shale player ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma), which holds a minority interest in their Matterhorn joint venture, unveiled Eiger Express last week, describing the 450-mile, 42-inch pipeline as an integral part of the takeaway capacity from the Permian to support growing commitments for exports of liquefied natural gas (LNG).
WhiteWater Midstream (Austin, Texas) leads the Matterhorn joint venture alongside ONEOK, MPLX LP (Findlay, Ohio), part of Marathon Petroleum Corporation (Findlay), and Enbridge. Eiger, which will be among the longer networks in the region, is supported by 10-year transportation agreements. It could be completed by 2028.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for the project report.
The U.S. is already the world leader in natural gas production. The Energy Information Administration (EIA), part of the U.S. Department of Energy, expects total marketed natural gas production to increase by 3% from year-ago levels, supported by expected growth of around 2 Bcf/d from the Permian region alone.
"We expect marketed natural gas production will be generally unchanged next year, even though we expect falling oil prices will reduce production of associated natural gas, particularly in the Permian Basin," EIA analysts wrote in the Short-Term Energy Outlook report for August. "However, production declines will be muted as producers strategically position themselves to meet rising demand from several LNG projects that are set to enter service in late 2025 and 2026."
As basins mature, the gas-to-oil ratio changes and reservoirs such as the Permian tend to become gassier over time. The EIA expects Permian gas production to increase from 27.5 Bcf/d to 27.6 Bcf/d by next year, while total U.S. gas production declines from 116.8 Bcf/d to 116.7 Bcf/d.
Enbridge in its second quarter earnings release said it increased the capacity on its Traverse pipeline to the Gulf Coast from 1.75 Bcf/d to 2.5 Bcf/d, adding further support to U.S. LNG export commitments.
Hosting a dense network of pipelines spanning much of North America, Enbridge has said it's largely resilient from U.S. tariffs enacted since President Donald Trump returned to office in January.
Though energy trade was ultimately spared, Trump has imposed tariffs on aluminum and steel, complicating the U.S. supply chain as the nation doesn't make much of the type of steel used in oil and gas pipelines.
Canada, meanwhile, is looking to diversify its trade options outside of North America to insulate itself from the Trump tariffs. On Canada's west coast, the Aitken Creek storage facility is the only one in British Columbia, and Enbridge said it would add more capacity to support future deliveries of LNG from the province.
Subscribers can click here for a detailed plant profile of Aitken Creek.
Enbridge reported adjusted earnings of US$1.03 billion for the second quarter, compared with $907 billion during the same period last year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
