In the past four years, natural gas production in the Permian Basin has doubled — from 6.6 Bcf/d in August 2017 to 13.4 Bcf/d now. To keep pace, the midstream sector has spent many billions of dollars on new gas gathering systems, processing plants, and takeaway pipelines, with virtually all of that investment backed by long-term commitments from producers and other market players. Thanks to that build-out, the Permian now has sufficient takeaway capacity — at least for another couple of years. But despite the 50-plus processing plants that have come online in the play’s Delaware and Midland basins in recent years, still more processing capacity is needed, as evidenced by the expansion projects and new plants that we discuss in today’s blog.
One Step Ahead – Permian Natural Gas Growth Spurs More Processing Capacity
