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    Permian gas production reached record high in 2022: EIA


Four pipeline projects underway to increase basin takeaway capacity.

by: Dale Lunan

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Permian gas production reached record high in 2022: EIA

Associated natural gas production in the Permian Basin reached a record 21bn ft3/day in 2022, 14% higher in 2021, the US Energy Information Administration (EIA) said June 13.

The EIA attributed the increased gas production to higher crude oil output, as producers responded to crude oil prices that climbed from $39/barrel in 2020, as COVID restrictions took hold, to $68/b in 2021 and $94/b in 2022.

As crude prices rose, so did rig counts in the Permian, from 240 rigs in 2021 to 335 rigs in 2022. And as the rig count rose, the EIA said, so did natural gas production.

With Permian gas production increasing, midstream pipeline companies are working to increase takeaway capacity from the basin, with an expected 4.2bn ft3/day of new capacity expected to come online by the end of 2024.

The Whistler Pipeline capacity expansion, a project by a consortium led by WhiteWater and MPLX LP, will add three new compressor stations, increasing capacity to 2.5bn ft3/day from 2bn ft3/day. The new capacity is expected to enter service in September 2023.

KinderMorgan’s Permian Highway pipeline expansion, also a compression project, will add 550mn ft3/day of capacity to the 2.1bn ft3/day pipeline, and is expected to enter service in November 2023. It is also adding 600mn ft3/day of capacity, through additional compression, to its Gulf Coast Express pipeline, a project which should be in service by December 2023.

And the 2.5bn ft3/day Matterhorn Express Pipeline, between the Waha Hub and Katy, Texas, is expected to enter service by Q4 2024, the EIA said.