Energy Transfer to build natgas pipeline in Texas amid soaring Permian production
Dec 6 (Reuters) - U.S. pipeline operator Energy Transfer said on Friday it plans to build an intrastate natural gas pipeline in Texas to move gas from the prolific Permian basin.
The new pipeline, to be called Hugh Brinson, will be constructed in two phases and would cost a combined $2.7 billion.
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The first phase, with a capacity of 1.5 billion cubic feet per day (bcf/d), would extend from Waha to Maypearl, Texas, and is expected to come online by the end of 2026.
The second phase would increase the capacity of the new pipeline to about 2.2 bcf/d with the addition of compression capacity and would be constructed concurrently with the first phase if there is enough demand.
Permian gas production is set to increase to 24.5 bcf/d for 2024, from 22.7 bcf/d in 2023, according to the U.S. Energy Information Administration. It is projected to reach 25.8 bcf/d in 2025.
The Permian basin, which straddles Texas and New Mexico, accounts for half of U.S. crude output and is the second-largest shale-gas producing region.
Soaring gas production and a lack of pipeline capacity at the Permian drove down natural gas prices to below zero earlier this year.
(Reporting by Pooja Menon in Bengaluru; Editing by Shounak Dasgupta)