The Matterhorn Categorical Pipeline house owners introduced Monday a constructive FID (remaining funding determination) for the Eiger Categorical Pipeline, which might carry as much as 2.5 billion cubic ft a day (Bcfd) of pure fuel from the Permian Basin to the Gulf Coast area.
WhiteWater Improvement LLC, ONEOK Inc., MPLX LP and Enbridge Inc. “secured enough agency transportation agreements with primarily funding grade shippers”, a joint assertion mentioned. The agency transport offers final 10 years or longer.
The conduit is predicted to begin operations mid-2028, topic to regulatory and different approvals.
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“Provide for the Eiger Categorical pipeline can be sourced from a number of connections within the Permian Basin, together with fuel processing amenities within the Midland Basin, and from the Delaware Basin through the Agua Blanca Pipeline”, the assertion mentioned.
The 42-inch pipeline is deliberate to stretch round 450 miles from West Texas to the Katy space close to Houston. It might even have reserved capability for deliveries to the Corpus Christi market.
“This pipeline’s strategic location provides connectivity to rising pure fuel demand markets, serving to to satisfy the necessity for growing electrical energy era and worldwide demand for liquified pure fuel exports”, mentioned ONEOK president and chief government Pierce H. Norton II.
The Matterhorn three way partnership of the 4 firms owns 70 p.c of the challenge. MPLX and ONEOK every have a direct possession of 15 p.c.
Within the Matterhorn JV, WhiteWater owns 65 p.c, ONEOK 15 p.c, MPLX 10 p.c and Enbridge Inc. 10 p.c. WhiteWater operates the Matterhorn pipeline.
In Eiger, on account of their stakes within the Matterhorn JV, ONEOK and MPLX personal a complete of 25.5 p.c and 22 p.c respectively.
WhiteWater will construct and function the brand new pipeline.
Enbridge Entry
Enbridge entered the Matterhorn JV earlier this yr, whereas MPLX raised its stake from 5 p.c, by means of the acquisition of stakes held by Devon Vitality Corp. and Ridgemont Fairness Companions.
Put onstream November 2024, the Matterhorn pipeline consists of a 510-mile mainline and related compression that carries fuel from the Waha space to Wharton, Texas. It additionally has supply capabilities for Katy in addition to laterals within the Midland Basin, based on WhiteWater. The pipeline, with a capability of two.5 Bcfd, is absolutely contracted.
Pelican Upsize
Earlier this yr WhiteWater authorized the Traverse Pipeline and upsized the Pelican Pipeline, which it authorized 2024.
The upsize to a 42-inch pipeline will enhance Pelican’s capability to about 2.5 Bcfd, from the earlier 1.75 Bcfd. It’s deliberate to span 170 miles from Williams, Louisiana, to the Gillis Hub close to Ragley, Louisiana.
“The enlargement is scheduled to be in service in first half of 2027, pending the receipt of customary regulatory and different approvals”, WhiteWater mentioned July 30.
FIC Companions Administration LP, Stonepeak Companions LP and Hint Capital have agreed to put money into Pelican.
Traverse FID
On April 3 WhiteWater introduced a FID for the 36-inch Traverse bi-directional pipeline alongside the Gulf Coast between Agua Dulce in South Texas and the Katy space.
It’s deliberate to have a capability of 1.75 Bcfd and anticipated to begin service 2027. “Provide for the Traverse Pipeline can be sourced from a number of connections, together with, however not restricted to, the Whistler, Blackcomb, and Matterhorn Categorical Pipelines”, operator WhiteWater mentioned. “The Traverse Pipeline enhances optionality for shippers to entry a number of premium markets”.
The Traverse Pipeline is underneath the Blackcomb Pipeline JV, which is owned 70 p.c by the WPC JV of WhiteWater (50.6 p.c), MPLX (30.4 p.c) and Enbridge (19 p.c). Targa Sources Corp. and MPLX maintain 17.5 p.c and 12.5 p.c respectively within the Blackcomb Pipeline JV.
To contact the creator, electronic mail jov.onsat@rigzone.com
