Massive natural gas pipeline planned through SETX

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  • Map of pipeline
    Map of pipeline
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Whitewater Midstream plans to build a massive natural gas pipeline through Southeast Texas that appears to be intended as an extension of the Matterhorn Express Pipeline, reported East Daley Analytics.

In March, the Railroad Commission (RRC) of Texas approved Whitewater’s permit to construct the Blackfin Pipeline, a 48- inch pipeline, which is an approximately 193-mile intrastate pipeline designed to transport up to 3.5 billion cubic feet per day of natural gas from Sheridan, southwest of Columbus, in Colorado County to Temco in southern Jasper County near Evadale. The line is designed to deliver energy for up to 28 million homes daily.

The pipeline will run through Austin, Waller, a tip of Harris County, through Montgomery, Hardin, Liberty and Jasper counties. Construction is expected to begin in the second quarter of 2024 and conclude by the second quarter of 2025, with an in-service date in late 2025.

“The Blackfin pipeline is a critical piece of energy infrastructure and will play an important role in America’s energy security,” stated Cody McGregor, spokesperson for the Blackfin Pipeline. “Our team is committed to working with and listening to landowners and relevant stakeholders. We encourage community members to visit www. blackfinpipeline.com for details and updates.”

According to Blackfin Pipeline officials, there is an estimated $70 million in state and local tax revenue anticipated throughout completion of construction.

Whitewater is a management-owned, Austin-based infrastructure company founded in 2016. Whitewater is partnered with multiple private equity funds and direct investors. Since inception, Whitewater has reached final investment decisions on $3 billion in greenfield development projects. Permian natural gas markets have been in steady growth mode for over five years.

“As the natural gas production continues to grow, the Blackfin Pipeline will provide critical takeaway capacity moving product to market for end use and play a significant role enhancing our nation’s energy security, reducing energy costs, and minimizing emissions related to flaring,” stated officials.

East Daley Analytics reported, according to the application, Blackfin’s economic operator would be Matterhorn Express Pipeline, the 2.5 Bcf/d (billion cubic feet per day) pipeline under construction out of the Permian Basin. The Matterhorn joint venture includes EnLink Midstream (ENLC), Devon Energy (DVN) and MPLX (MPLX). The partners took a final investment decision (FID) on Matterhorn in May 2022 and are targeting start-up in the third quarter of 2024.

The pipeline could take Eagle Ford supply from Colorado County, but would start where Matterhorn Express terminates. Over the past four years, four new pipelines transporting gas from the Permian Basin have been constructed, delivering 9 billion cubic feet per day of natural gas to Gulf Coast markets.

The Blackfin Pipeline is a project fully underwritten by transportation service agreements to help distribute this additional supply to natural gas markets along the Gulf Coast. The pipeline will transport natural gas produced in the Permian Basin located in West Texas and southeast New Mexico. As one of the most prolific oil and gas fields in the U.S., the Permian Basin produces more than 16 billion cubic feet of natural gas per day.

The pipeline will typically be 3 feet below the surface and a minimum of 5 feet under road crossings. As typical with natural gas transmission pipelines, the pipeline will have a permanent easement of 50 feet, plus approximately 95 feet of additional workspace during the construction phase.

According to Blackfin Pipeline officials, the company will follow best management practices during construction to minimize erosion and sedimentation. Also, they’ll return the area of impacts to preexisting contours, ensure vegetation is reestablished, and return the work areas to as close to previous conditions as possible.

The Blackfin Pipeline will employ more than 2,000 skilled workers during the construction phase of the project and create 30 permanent jobs in Texas. While the project does have the right of eminent domain, it is only used as absolute last resort, according to the Blackfin Pipeline.

— Dannie Oliveaux