New Natural Gas Pipeline Project to Transport Permian Basin Gas to U.S. Gulf Coast

Strategic Insights -

ONEOK, Inc., MPLX LP, Whitewater, and Enbridge Inc. have announced a new 450-mile natural gas pipeline project, known as the Eiger Express Pipeline, designed to transport up to 2.5 billion cubic feet per day of natural gas from the Permian Basin to the U.S. Gulf Coast. The pipeline will be constructed and operated by WhiteWater, and is expected to be completed in mid-2028. The project addresses the growing natural gas production in the Permian Basin, which has been constrained by a lack of sufficient pipeline capacity, leading to price volatility and flaring.

Key Takeaways:

  • The Eiger Express Pipeline will be a 450-mile, 42-inch pipeline designed to transport up to 2.5 billion cubic feet per day of natural gas from the Permian Basin to the U.S. Gulf Coast.
  • The project is a joint venture between ONEOK, MPLX, and existing Matterhorn joint venture, with WhiteWater responsible for construction and operation.
  • The pipeline will have reserved capacity for deliveries to Corpus Christi and is supported by firm transportation agreements with terms of 10 years or longer.
  • The project demonstrates strong market demand for the capacity, driven by increasing electricity generation and international demand for liquefied natural gas exports.
  • The completion of the pipeline is contingent on obtaining customary regulatory approvals.
  • ONEOK President and CEO Pierce H. Norton II stated that the pipeline is needed to provide additional transportation capacity out of the highly productive Permian Basin.

Statistics:

  • The Eiger Express Pipeline will have a capacity of 2.5 billion cubic feet per day.
  • The pipeline will be 450 miles long and 42 inches in diameter.
  • The project is supported by firm transportation agreements with terms of 10 years or longer.
  • The Permian Basin has experienced significant growth in natural gas production, requiring increased pipeline capacity.

Sources:

  • "ONEOK, MPLX, Whitewater and Enbridge Announce Joint Venture to Develop Eiger Express Pipeline". Global Data Point. 2022.
  • Oneok Inc.