The Permian Has Solved Its Natural Gas Pipeline Shortage

The Permian Has Solved Its Natural Gas Pipeline Shortage

More natural gas pipelines have entered into service in recent months to carry gas from the Permian basin to Mexico, boosting U.S. gas exports to America's neighbor to the south and reducing the wide discount at which gas traded at the Waha Hub in Texas.  

Two natural gas pipelines have been completed in Texas since October 2020 and two others in Mexico, increasing the connectivity between natural gas producers in the Permian basin and the main markets for natural gas in the area and in Mexico, the U.S. Energy Information Administration (EIA) said on Tuesday.

In the U.S., Kinder Morgan's Permian Highway Pipeline, which entered service in early January 2021, brought an additional 2.1 Bcf/d of natural gas capacity from the Waha Hub in West Texas near production sites in the Permian to Katy, Texas, near the Gulf Coast. The Permian Highway Pipeline has additional connections to Mexico.