EnLink moves forward with Permian-Houston natgas pipeline project

HOUSTON, May 19 (Reuters) - EnLink Midstream (ENLC.N) on Thursday said it would move forward with the construction of a Permian-to-Houston natural gas pipeline after the company secured sufficient transportation agreements with shippers.

The Matterhorn Express Pipeline is designed to transport up to 2.5 billion cubic feet per day (bcfd) of natural gas through about 490 miles (790 km) from Waha, Texas, to near Houston, with supply sourced from connections in the Permian Basin.

The Matterhorn Express, a joint venture between infrastructure company WhiteWater, EnLink, Devon Energy (DVN.N), and MPLX (MPLX.N), is expected to be in service in the third quarter of 2024.

Pipeline operators have been committing to expanding existing pipelines or constructing new ones from the top shale field, the Permian basin, to the Gulf Coast, banking on a surge in global demand and exports for liquefied natural gas. read more

A lack of takeaway capacity in the Permian, spread across Texas and New Mexico, was set to hurt natural gas output even as prices surged to multi-year highs. read more

Enlink did not immediately respond to a request for an estimated cost of construction for the pipeline.

Reporting by Arathy Somasekhar in Houston Editing by Marguerita Choy

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