LNG Demand Drives $6.8 Billion in U.S. Nat Gas Pipeline Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Global demand for liquefied natural gas (LNG) has been a top priority for U.S. gas developers in recent years, and pipeline companies are hearing louder calls for infrastructure that can carry feedstock to facilities for processing and export. Industrial Info is tracking more than $6.8 billion worth of natural gas transmission projects across the U.S. that are scheduled to begin construction from October through December, more than 90% of which is attributed to projects that have a medium-to-high likelihood (70% or more) of moving forward as planned.

Click on the image at right for a graph detailing the top 10 parent companies for U.S.-based natural gas transmission projects set to kick off in the fourth quarter.

As is often the case, Texas dominates the list of pipeline kickoffs, with Louisiana in second place. Much of the Lone Star State's buildout is in and around the Permian Basin, where the demand for takeaway capacity has been skyrocketing in recent years. Earlier this summer, the U.S. Energy Information Administration (EIA) reported the Permian saw its gross natural gas production hit a record 21 billion cubic feet per day in 2022, a 14% jump from its 2021 average.

Energy Transfer (NYSE:ET) (Dallas, Texas) is among the companies leading the development of takeaway capacity in the Permian, notably with its Midland Express Pipeline, nicknamed "Warrior," which is designed to deliver up to 2 billion cubic feet per day from the Permian into the company's existing Texas pipeline system. The largest component is a 325-mile line from Upton County to Ellis County, Texas, which is expected to see construction run through the end of 2024.

Industrial Info also is tracking more than $250 million worth of compressor stations attached to the Midland Express Pipeline at five separate locations. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can learn more from a detailed project report and can click here for a list of reports on related compressor stations.

MPLX LP (NYSE:MPLX) (Finlay, Ohio), WhiteWater Midstream (Austin, Texas) and other partners are adding capacity to the existing Whistler Pipeline, which runs 450 miles from the Permian's Waha Hub to Agua Dulce, Texas. The additions will come from a trio of new compressor stations, which will expand capacity from 2 billion to 2.5 billion cubic feet per day. Subscribers can read detailed reports on the projects near Cotulla, Crockett and Brackettville in Texas.

Permian-sourced gas is a major reason why the U.S. led the world in LNG exports during the first half of this year. Feedstock for the increasingly important fuel comes largely from the Permian, the Haynesville formation and other areas where pipelines quickly connect the natural gas supply to LNG export facilities. For more information, see September 18, 2023, article - U.S. Returns to Top Worldwide LNG Exporter Status in First-Half 2023.

MPLX and its partners also are preparing to begin construction on a project along the Texas Gulf Coast: the 43-mile ADCC pipeline from Agua Dulce to Corpus Christi. The project is designed to transport up to 1.7 billion cubic feet per day from the terminus of the Whistler Pipeline at the Agua Dulce natural gas hub, to Cheniere Energy's (Houston, Texas) Corpus Christi Liquefaction Facility. The project's backers believe the ADCC line could be expandable to 2.5 billion cubic feet per day in the future. Subscribers can read more in a detailed project report.

Other U.S. regions are seeing capacity additions. TC Energy Corporation (NYSE:TRP) (Calgary, Alberta) is expanding its U.S. footprint with an 85-mile component of its GTN Xpress Pipeline from Kingsgate, Idaho, to Malin, Oregon. The GTN Xpress is designed to transport up to 150 million standard cubic feet per day from the Rocky Mountains region to the Pacific Northwest and West Coast. Subscribers can learn more from Industrial Info's project report.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for natural gas transmission projects across the U.S. that are scheduled to begin construction from October through December.

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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).