New Pipeline In Permian Basin

New pipeline in Permian is getting the go. Marathon Petroleum Corps MPLX LP master limited partnership have been approved to build the Whistler Pipeline from the Permian Basin in West Texas to the Coastal Bend Region.

The announcement follows the final investment decision by MPLX.  WhiteWater Midstream and a Stonepeak Infrastructure Partners/West Texas Gas, Inc. (WTG) joint venture to design and construct the pipeline.

The agreement of the 475-mile-long pipeline has been committed by long-term transportation agreements. The firm also predicted the remaining capacity will be fully subscribed in the coming months.

“The decision to move forward with this project after securing sufficient commitments from shippers demonstrates our disciplined approach to investing,” MPLX President Michael J. Hennigan said in a written statement. “Whistler is expected to provide reliable residue gas transportation out of the Permian Basin, which is vital to our growing gas processing position and producers in the region.”

The new pipeline is designed to carry about 2 billion cubic feet per day of gas through a 42-inch-diameter pipe from Waha, Texas, to the Agua Dulce area in South Texas. Both Waha and Agua Dulce are gas pricing hubs. Multiple upstream connections in the Permian Basin, this will include a direct links to Midland Basin plants and WhiteWater’s Agua Blanca Pipeline, will supply for Whistler, MPLX added

“The WhiteWater team is excited to partners with MPLX and develop incremental transportation out of the Permian Basin, as production continues to dramatically outperform consensus estimates,” WhiteWater CEO Christer Rundlof noted. “Whistler will tie directly into the most attractive markets in South Texas, including the growing LNG and Mexican markets.”

Upon regulatory approvals the project to build the pipeline should be in service by the third quarter of 2021.