East Daley Analytics – Dissecting the Energy Value Chain
Energy Insights and News

New Meters Point to Start of Permian Highway Expansion

Comments: 0

Several new downstream pipeline meters have started service in South Texas tied to the Permian Highway Pipeline (PHP), suggesting a planned expansion has been placed in service.

Operator Kinder Morgan (KMI) had targeted December 1 for the start-up of new compression, adding 0.5 Bcf/d of capacity to PHP. East Daley Analytics noticed two new meter points began reporting data on December 1 where PHP ties into Natural Gas Pipeline of America (NGPL) and Tennessee Gas Pipeline (TGP) in Wharton County, TX. In the first week of December, NGPL received ~100 MMcf/d at the new meter while flows to TGP averaged ~120 MMcf/d.

tdn 12.12

The start of flows coincides with KMI’s planned in-service date for the PHP expansion. EDA does not know if the meters are drawing new Permian Basin production or are diverting receipts from other processing plants. We noted recently that samples of Permian Basin receipts on interstate pipes hit a new record high in November ‘23 of 6.3 Bcf/d, an indication of rising production.

The El Paso Natural Gas system accounted for a large share of the gains in the November samples. Interestingly, El Paso receipts from the Permian declined W-o-W by ~220 MMcf/d in the first week of December. The Alpine High and Raptor G&P systems owned by Kinetik (KNTK) have been responsible for most of the recent swings in El Paso samples. KNTK is also an equity owner and shipper on PHP, and the company could be redirecting flows from El Paso to the new expansion.

In the Permian Basin Supply and Demand Forecast, EDA expects Permian residue gas production to quickly fill the PHP expansion (see figure). We model Permian production exits 2023 at 17.4 Bcf/d, a Y-o-Y increase of 2.3 Bcf/d. New natural gas processing and egress pipeline expansions like the PHP project have supported higher supply from the basin, contributing to downward pressure on gas prices recently. – James Taylor Tickers: KMI, KNTK.



Dirty Little Secrets is Coming December 13

Join East Daley on December 13 at 10 am MST for our Dirty Little Secrets annual webinar. In “Volatility Will Continue Until Morale Improves,” we will dive into the dynamics likely to drive volatility ahead in energy markets. We review commodity drivers in oil, natural gas and NGL and the midstream outlook. Our seasoned experts will dissect the key elements shaping the industry across multiple commodities. RSVP here to join us.


East Daley, Hart Bring NEW Gas & Midstream Weekly

East Daley is teaming up with Hart Energy on the NEW Gas & Midstream Weekly newsletter. This new report combines the strengths of Hart Energy's journalistic reporting and analysis on natural gas, LNG, midstream energy and deal-making with EDA's deep research and intelligence of hydrocarbons, storage and transportation. 
Published every Thursday morning, this new
powerhouse newsletter is an interactive and enlightening read highlighting breaking news, exclusive interviews, videos, charts, maps and more. The newsletter utilizes East Daley's Energy Data Studio tools for natural gas predictive analytics with Hart Energy's Rextag mapping tools to present a holistic view of pricing triggers, infrastructure growth, pipeline and processing bottlenecks, regulatory and legal hurdles, and the inevitable solutions. 

Energy Data Studio

East Daley Analytics has launched Energy Data Studio, a platform for our industry-leading midstream data and commodity production forecasts. All clients have access to the new client portal. If you have not yet logged in, please fill out the form to request a registration email be resent.

Energy Data Studio leverages our G&P data set for insights into midstream assets across every major oil and gas basin in North America. Users can navigate detailed visual dashboards by region, pipeline, or individual asset to understand crude oil, natural gas and NGL supply at the most granular level.

Energy Data Studio is available through data downloads from the visual interface, in Excel files, or as a direct feed delivered into subscribers’ workflow via secure file transfer. To learn more about Energy Data Studio, please contact insight@eastdaley.com.

The Daley Note

Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.

About the AuthorEast Daley Analytics