ONEOK, WhiteWater, MPLX and Enbridge have unveiled the Eiger Express Pipeline project to transport natural gas from the Permian Basin to the Gulf Coast region in the US.
The entities, through their Matterhorn joint venture (JV), collaborated with affiliates of ONEOK and MPLX and made the final investment decision for the construction of the pipeline after securing enough firm transportation contracts, mainly with shippers of investment-grade standing.
Spanning almost 450 miles, the pipeline is 42in in diameter and designed to transport up to 2.5 billion cubic feet per day (bcf/d) of natural gas from the Permian Basin in West Texas to the vicinity of Katy, near Houston, Texas.
The project also includes provision for reserved supply capabilities to the market in Corpus Christi, Texas.
The Eiger Express Pipeline is set to source natural gas from various processing sites, including those under the ownership of ONEOK and MPLX, as well as from pipeline links within the Midland and Delaware basins.
The Matterhorn JV owns 70% of the Eiger Express Pipeline JV, while ONEOK and MPLX each hold a 15% stake.
ONEOK's total ownership interest in the pipeline is 25.5%, which encompasses its interest in the Matterhorn JV.
ONEOK president and CEO Pierce H. Norton II said: "This important infrastructure project is needed to provide additional transportation capacity out of the highly productive Permian Basin.
"This pipeline's strategic location offers connectivity to growing natural gas demand markets, helping to meet the need for increasing electricity generation and international demand for liquified natural gas (LNG) exports."
The Eiger Express Pipeline has garnered support through firm transportation agreements with contract terms of a decade or more than the duration.
WhiteWater is tasked with the construction and operation of the pipeline, which is scheduled for completion by mid-2028, subject to customary regulatory and additional approvals.
Headquartered in Tulsa, Oklahoma, ONEOK is an S&P 500 and integrated energy infrastructure company in North America.
A midstream operator, it provides a range of energy products and services including gathering, fractionation, marine export, processing, storage and transportation.
The company operates a pipeline network of around 60,000 miles that transports natural gas liquids (NGLs), natural gas, refined products and crude oil.
In June of this year, ONEOK bolstered its position in the energy sector by acquiring the remaining 49.9% interest in the Delaware Basin JV from NGP XI Midstream Holdings.
