U.S. midstream companies ONEOK, WhiteWater, MPLX LP, and Canada-based Enbridge Inc. have reached a final investment decision (FID) on a major new natural gas conduit: the Eiger Express Pipeline.
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The project, advanced through the existing Matterhorn joint venture, will transport rising natural gas production from the Permian Basin to key Gulf Coast markets. With a capacity of roughly 26 bcm per year (2.5 Bcf/d), the pipeline will flow gas from the Midland and Delaware sub-basins to Katy, Texas, while reserving dedicated capacity for Corpus Christi deliveries.
Project Overview
- Pipeline Name: Eiger Express Pipeline
- Location: From the Permian Basin (Midland & Delaware) to Katy (near Houston, TX), with capacity reserved for Corpus Christi deliveries.
- Capacity: ~26 bcm/year (~2.5 Bcf/d).
- Route: Will generally parallel the existing Matterhorn Express Pipeline.
- Feed Source: Gas from processing facilities, including those owned by ONEOK and MPLX.
Ownership & Structure
- Matterhorn JV: Owns 70% of the project.
- ONEOK: 15% via JV + 15% direct stake = 25.5% total.
- MPLX LP: 15% via JV + 15% direct stake = 22% total.
- Enbridge Inc. (Canada): Stake held through Matterhorn JV.
- WhiteWater Midstream: JV partner, also construction & operator lead.
Timeline
- FID Reached: August 2025 (final investment decision).
- Expected Completion: Mid-2028, pending regulatory and other approvals.
WhiteWater will lead construction and operation, targeting a mid-2028 completion, pending approvals. Ownership is split with the Matterhorn JV holding 70%, while ONEOK and MPLX each add 15% direct stakes, bringing their total shares to 25.5% and 22% respectively.
Why It Matters
Natural gas takeaway capacity remains one of the biggest challenges in the Permian Basin. Even as oil output stabilizes, associated gas production keeps climbing, driven by efficiency gains and stacked pay drilling. The Eiger Express will help relieve constraints and unlock new market optionality:
- Feed LNG export terminals along the Gulf Coast.
- Support power generation in ERCOT’s growing Texas grid.
- Balance flows between Houston-area demand and Corpus Christi’s LNG hub.
Permian Drilling Activity: The Supply Behind the Pipe
This FID comes at a time when drilling in the Permian Basin remains strong, even against softer commodity prices.
- Rig Count: The Permian consistently accounts for nearly 50% of all active U.S. rigs.
- Drilling Trends: Activity is consolidating around the largest operators, with Diamondback, ConocoPhillips, Occidental, and ExxonMobil driving efficiency gains.
- Gas Volumes: Associated natural gas output is expected to push U.S. production to record levels through 2025 and beyond.
Infrastructure like the Eiger Express ensures that new wells drilled in the Permian can reach global demand centers. Without it, producers risk bottlenecks that weigh on prices at hubs like Waha, where basis differentials often widen under pipeline constraints.
The Bigger Picture
The Eiger Express marks another strategic investment by leading midstreamers to future-proof Permian growth. Together with the Matterhorn Express Pipeline, it creates a twin system of takeaway capacity that will help balance supply and demand across Texas markets.
For service companies and operators alike, this is a reminder: Permian gas is not slowing down. Midstream is betting billions on continued production growth, and that means sustained drilling, completion, and facility demand across the basin.
