Targa, NextEra, WhiteWater, MPLX plan Permian gas line

Targa Resources, NextEra Energy Resources, WhiteWater Midstream and MPLX have proposed a new 2-Bcf/d (57mn m³/d) pipeline to transport natural gas from the Permian basin to Gulf coast markets.

The proposed Whistler pipeline project includes 450 miles of 42-inch pipeline from Waha, Texas to NextEra's Agua Dulce market hub near Corpus Christi, Texas. An additional 170-mile, 30-inch pipeline will continue from Agua Dulce and terminate in Wharton county, Texas.

Gas supply would be sourced from multiple upstream connections in both the Midland and Delaware basins, including direct connections to Targa plants through a 27-mile, 30-inch lateral pipeline, as well as a direct connection to the 1.4-Bcf/d Agua Blanca pipeline in the Delaware basin.

The Whistler project would be constructed by NextEra Energy and operated by Targa.

The companies have proposed to begin operation in the fourth quarter of 2020, subject to funding and approvals. The pipeline is expected to be financed at the project level.

The companies and their respective producer customers would collectively commit volumes in excess of 1.5 Bcf/d to the Whistler project.

The Whistler project is also in negotiations for additional firm transportation commitments and is expected to launch an open season in the coming months with respect to any remaining firm intrastate transportation capacity.

A lack of adequate pipeline infrastructure out of the Permian basin has led to growing concerns about downward pressure on gas prices.

Most of the gas production in the Permian is associated gas, a byproduct of crude-targeted drilling.

Multiple pipelines are currently planned or under construction to transport gas out of the Permian basin, but are not due to come online until 2019-2020.