Permian natural gas outlet Whistler Pipeline to grow 25% with more compression

Capacity of the Whistler Pipeline from the Waha header in the Permian Basin in West Texas to Agua Dulce in South Texas is slated to grow from 2.0 Bcf/d to 2.5 Bcf/d, with additional compression, operator MPLX said May 2 in announcing a final investment decision for the project.

Three compressor stations are to be added, with in-service planned for September 2023. The additional compression would take Whistler to its maximum potential without building a new pipeline, MPLX said earlier this year.

"The decision to move forward with this expansion project after securing sufficient commitments from shippers demonstrates our disciplined approach to investing," said Timothy J. Aydt, MPLX executive vice president and chief commercial officer. "Whistler has demonstrated its ability to provide reliable and cost-efficient residue gas transportation out of the Permian Basin, which is vital to our growing gas processing position, producers in the region and gas customers."

The 450-mile, 42-inch diameter Whistler provides direct access to South Texas and export markets. An approximately 85-mile, 36-inch diameter lateral provides connectivity to the Midland Basin.

Demand for Permian takeaway capacity is being driven by gas output associated with surging crude production, and the growing feedgas needs of LNG exporters. Restrictions on the flaring of associated gas also support future takeaway capacity demand from the Permian.

With Permian producers eager to avoid the kind of basis blowouts that were commonplace before the most recent wave of intrastate pipelines came online in 2021, midstream companies have turned to brownfield expansion projects rather than proposing new pipelines.

Expanding existing pipelines with established rights of way helps operators avoid the kind of permit-related delays that have plagued greenfield projects in recent years, adding a needed element of speed to the process. Analysis from S&P Global Commodity Insights estimates that current takeaway capacity is around 17 Bcf/d, which could be reached as early as the fourth quarter of 2023.

Kinder Morgan is looking to expand its Permian Highway Pipeline and Gulf Coast Express pipeline, which could add up to 1.2 Bcf/d of additional Permian takeaway capacity if completed, company executives said in an earnings call April 20.

On April 25, Permian Highway Pipeline started a binding open season to solicit long-term transportation commitments for around 650 MMcf/d of additional capacity. The pipeline has already secured one long-term commitment for around half of the proposed expansion, according to a statement April 26. The two Kinder Morgan expansion projects would have an 18-month time frame to in-service from the time of FID, executives said April 20.

Whistler is owned through a joint venture of MPLX, WhiteWater Midstream, Stonepeak Partners and West Texas Gas.