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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--About 20 years ago, the shale revolution took hold, using new technology to release oil (along with natural gas and water) from tight sands, primarily in the Permian Basin of Texas and New Mexico, and the Bakken in North Dakota.
As the fields mature, particularly in the Permian Basin, those oil wells are producing larger amounts of natural gas. This is great for what might be called the liquefied natural gas (LNG) revolution, which began about 10 years ago when U.S. export restrictions were removed.
More gas means more capital expenditures (capex) for processing plants to remove impurities, for additional takeaway capacity in pipelines. Industrial Info is tracking eight projects totaling more than $1 billion in new plant construction.
IIR Energy data show that Permian dry gas production reached 20 billion cubic feet per day (Bcf/d) in April of 2025.
IIR Energy Natural Gas Products and Senior Energy Analyst Maria Sanchez added, "Production in the Permian has increased by over 1 Bcf/d (billion cubic feet per day) in the past year and continues growing strongly based on pipeline receipts in the area."
Explosive growth data from the U.S. Energy Information Administration (EIA) show that, while the Permian Basin was second (22%) in total U.S. natural gas production to Appalachia (31%) in 2024, the Permian led the nation in natural gas growth over 2023 levels. In fact, it accounted for almost all the growth.
"In 2024, marketed natural gas production in the Permian rose by 12%, or 2.7 Bcf/d, to average 25.4 Bcf/d," the EIA said. Appalachian production grew only by 0.9 Bcf/d year-over-year. This constraint is largely due to lack of growth in takeaway capacity in the Appalachian region, where new pipeline projects have been strongly challenged by regulators and environmental groups.
Plant growth has been moving at breakneck speed for two years, said IIR Vice President of Energy Services Jesus Davis.
"We've been adding about 3.5 Bcf/d per year of NGL (natural gas liquid) recovery capacity in the U.S. since 2023 with over 3 Bcf/d of it in the Permian," Davis said. "For 2026, we have about 2.5 Bcf/d of capacity proposed."
Even at this pace, gas production growth has been stunted by the fact that it's more complicated to add pipeline capacity than it is to drill more wells.
Sanchez pointed out, "Permian Basin natural gas production has been capped by takeaway capacity," which has created pricing issues at the region's bellwether Waha hub in Pecos County, Texas, near Fort Stockton, a conjunction point for four interstate pipelines and nine in-state lines. Its pricing numbers are to Permian gas what Louisiana's Henry Hub is to national prices.
Sanchez continued, "As output climbs, existing pipeline capacity becomes constrained, creating bottlenecks that push Waha basis deeply negative as producers discount gas to secure market access."
Several times in the last two years, prices there have indeed gone into the negative--meaning producers must actually pay to unload their gas instead of getting paid for it.
Usually, this is worth it to oil producers because the only other alternative would be to shut in oil production, which would cost even more. But it creates difficulties in funding natural gas pipelines and processing plants, spending billions for something that too often becomes a further cost instead of creating a return on investment.
Sanchez added, "When new takeaway projects are completed, these constraints ease, flows improve, and the Waha basis rebounds--often swinging back into positive territory. This recurring cycle reflects the basin's rapid production growth potential and the lag between drilling activity and midstream infrastructure expansions."
Below is a list of Permian grassroot gas projects being tracked by Industrial Info. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click on each project name for the project report:
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).
As the fields mature, particularly in the Permian Basin, those oil wells are producing larger amounts of natural gas. This is great for what might be called the liquefied natural gas (LNG) revolution, which began about 10 years ago when U.S. export restrictions were removed.
More gas means more capital expenditures (capex) for processing plants to remove impurities, for additional takeaway capacity in pipelines. Industrial Info is tracking eight projects totaling more than $1 billion in new plant construction.
IIR Energy data show that Permian dry gas production reached 20 billion cubic feet per day (Bcf/d) in April of 2025.
IIR Energy Natural Gas Products and Senior Energy Analyst Maria Sanchez added, "Production in the Permian has increased by over 1 Bcf/d (billion cubic feet per day) in the past year and continues growing strongly based on pipeline receipts in the area."
Explosive growth data from the U.S. Energy Information Administration (EIA) show that, while the Permian Basin was second (22%) in total U.S. natural gas production to Appalachia (31%) in 2024, the Permian led the nation in natural gas growth over 2023 levels. In fact, it accounted for almost all the growth.
"In 2024, marketed natural gas production in the Permian rose by 12%, or 2.7 Bcf/d, to average 25.4 Bcf/d," the EIA said. Appalachian production grew only by 0.9 Bcf/d year-over-year. This constraint is largely due to lack of growth in takeaway capacity in the Appalachian region, where new pipeline projects have been strongly challenged by regulators and environmental groups.
Plant growth has been moving at breakneck speed for two years, said IIR Vice President of Energy Services Jesus Davis.
"We've been adding about 3.5 Bcf/d per year of NGL (natural gas liquid) recovery capacity in the U.S. since 2023 with over 3 Bcf/d of it in the Permian," Davis said. "For 2026, we have about 2.5 Bcf/d of capacity proposed."
Even at this pace, gas production growth has been stunted by the fact that it's more complicated to add pipeline capacity than it is to drill more wells.
Sanchez pointed out, "Permian Basin natural gas production has been capped by takeaway capacity," which has created pricing issues at the region's bellwether Waha hub in Pecos County, Texas, near Fort Stockton, a conjunction point for four interstate pipelines and nine in-state lines. Its pricing numbers are to Permian gas what Louisiana's Henry Hub is to national prices.
Sanchez continued, "As output climbs, existing pipeline capacity becomes constrained, creating bottlenecks that push Waha basis deeply negative as producers discount gas to secure market access."
Several times in the last two years, prices there have indeed gone into the negative--meaning producers must actually pay to unload their gas instead of getting paid for it.
Usually, this is worth it to oil producers because the only other alternative would be to shut in oil production, which would cost even more. But it creates difficulties in funding natural gas pipelines and processing plants, spending billions for something that too often becomes a further cost instead of creating a return on investment.
Sanchez added, "When new takeaway projects are completed, these constraints ease, flows improve, and the Waha basis rebounds--often swinging back into positive territory. This recurring cycle reflects the basin's rapid production growth potential and the lag between drilling activity and midstream infrastructure expansions."
Below is a list of Permian grassroot gas projects being tracked by Industrial Info. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click on each project name for the project report:
- Secretariat Permian Delaware Cryogenic Natural Gas Processing
- Mustang Draw Cryogenic Natural Gas Processing
- Agila Cryogenic Natural Gas Processing
- Iron Mesa Natural Gas Processing
- East Driver Natural Gas Processing
- East Pembrook Cryogenic Natural Gas
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).
