East Daley forecasts tight takeaway capacity for gas pipelines from Permian – Permian Basin Oil and Gas Magazine

East Daley Analytics said Sept. 30 falling Permian Basin prices for natural gas put a spotlight on pipeline takeaway capacity.  East Daley forecast Permian Basin egress to tighten by late 2022 “yet the steep discounting at Waha suggests takeaway is already tight.”  Reduced exports to Mexico also have put pressure on Permian prices, according to the report.

Rob Wilson, East Daley vice president, told Midland Reporter Telegram signs of tightening takeaway capacity began showing in early September to illustrate the negative effect tight takeaway capacity has on prices.  “Currently our projections show the Permian hitting capacity around November or December of this year,” he said.  Wilson said Matterhorn Express pipeline will add 2.5 billion cubic feet of natural gas per day from Waha to Katy in 2024 to create excess capacity.  “Until that point, though, we see egress out the Permian Basin remaining very tight with all pipes remaining full to slightly over capacity as production continues to increase and egress capacity remains flat,” he added.  “This could result in DUC inventories increasing and a decrease in rig activity in the near term.”

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