The ONEOK Saguaro Connector Pipeline will consist of approximately 155 mi. of 48-in. natural gas pipe. It will originate at the Waha Hub in Pecos County.
(Pipeline and Gas photo)
The Permian Basin is no stranger to setting records. Over the last two years, oil production and natural gas in Texas has been very strong. With increased production growth comes more pipeline projects to carry oil and gas where it needs to go.
As such, the gasoline-to-oil ratios are changing in the Permian Basin.
At this year's Goldman Sachs Global Energy and Clean Technology Conference, Pioneer CEO Scott Sheffield predicted that within the next 10 years, gas production will account for more than 50 percent of production. He said he expects that Permian natural gas production will reach 30 billion cu. ft. per day (Bcf/d) over that stretch. Because of that growth, he believed new gas pipelines will be needed every 18-to-24 months for at least the near future.
Crude oil will continue to grow as well, according to a Plains All America Pipeline release. It's looking for Basin production to grow by "as much as 500,000 barrels per day in 2023," said the report.
Upcoming Pipeline Projects 2023
ONEOK Saguaro Connector Pipeline: One midstream operator in the U.S. Midwest is ONEOK. Its Saguaro Connector Pipeline subsidiary recently filed a Presidential Permit application with the Federal Energy Regulatory Commission (FERC) to construct and operate facilities for the exportation of natural gas at a new international border-crossing at the U.S. and Mexico border in Hudspeth County, Texas, according to a press release.
The line will consist of approximately 155 mi. of 48-in. natural gas pipe. It will originate at the Waha Hub in Pecos County. Capacity will be approximately 2.8 (Bcf/d). ONEOK expects to make a final investment decision (FID) by mid-2023.
Kinder Morgan Permian Highway: KM's Permian Highway Pipeline (PHP) expansion project is expected to increase the existing line's capacity by approximately 550 million cu. ft. per day (MMcf/d). PHP extends from the Waha area to other lines near Katy, Texas, and other U.S. Gulf Coast markets. The main work will involve adding compression.
Kinder Morgan reported that land acquisition is continuing, along with the lining up of materials and contractors for the work. It's expected to be completed by late 2023.
KM also is hoping to grow capacity in nearby states, as they are filing a FERC application for their Evangeline Pass expansion project in Louisiana and Mississippi. The upgrade will provide up to 2.0 million dekatherms per day (Dth/d) of additional natural gas capacity on Kinder Morgan's TGP and SNG systems in those states.
Matterhorn Express Pipeline: In May of 2022, WhiteWater EnLink Midstream and Devon Energy reached a final investment decision (FID) to move ahead with constructing the Matterhorn Express Pipeline. Assuming approvals of regulators and others, they expect the line to be in service by Q4 2024.
Designed to carry up to 2.5 Bcf/d through 490 mi. of pipe, it will reach from Waha to the Katy, Texas area.
Pipeline growth is great for the industry and consumers, but it comes with challenges, both in planning stages and over the long haul.
The Pipeline and Hazardous Materials Safety Administration (PHMSA) of the U.S. Department of Transportation (DOT), requires regular updates on any buildup of houses or businesses near an oil or gas pipeline, due to safety issues. PHMSA requires other monitoring as well. That means midstream companies must schedule visual inspections on their existing systems — as well as the new pipelines coming online — to comply with regulations and to assure the nearby area's safety.
Aerial inspections will be key tools for efficiently expediting the above-listed requirements.
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