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Midstream firms ramp up Permian natural gas processing capacity
Each Permian barrel now comes with 1.3 barrels equivalent of natural gas and NGLs, up from 1.0 in 2022, pushing operators to expand takeaway infrastructure.
ETF Trends says midstream MLPs and corporations raised full-year financial guidance after a strong second quarter, citing an accelerating growth runway driven by more Permian natural gas takeaway and processing needs.
The article links rising associated gas volumes, record LNG export and power demand backlogs, and periodic pipeline bottlenecks to a wave of new gas processing and natural gas liquids infrastructure, as the Permian basin becomes “gassier” over time.
It notes critical infrastructure relief began mid-year, including Kinder Morgan’s June start-up of the Gulf Coast Express Expansion at 570 million cubic feet per day, and it adds that the Waha natural gas benchmark moved back into positive territory after months of negative trading.
More capacity is coming from projects already in service, including Energy Transfer’s 1.5 Bcf/d Hugh Brinson pipeline and a 2.5 Bcf/d joint venture Blackcomb pipeline commissioning in July, and it also highlights a consortium led by WhiteWater Midstream sanctioning the Solitude Pipeline System, with two 2.25 Bcf/d pipelines expected to start in late 2029 and in 2030.
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