Permian Producers Lock Up Matterhorn Pipeline Capacity, Eye Gulf Coast Growth

Matterhorn Express is now fully subscribed after Permian producers expanded contracts in Q1 2025, according to East Daley Analytics. With new compression on the way, demand for the added pipeline capacity is expected to remain strong.

(P&GJ) — The Matterhorn Express Pipeline is now fully subscribed after several Permian Basin producers expanded their transportation agreements in the first quarter of 2025, according to a recent report by East Daley Analytics.

Regulatory filings show EOG Resources, Diamondback Energy, and Anadarko Energy Services increased their firm transport (FT) contracts on the pipeline compared with the fourth quarter of 2024. Matterhorn now holds 2.06 MMBtu/d under contract, up from 1.87 MMBtu/d, effectively matching its current 2.0 Bcf/d capacity. Most of the contracts extend through 2034.

Among the updates, EOG doubled its FT capacity to 200,000 MMBtu/d from 100,000 MMBtu/d, Diamondback boosted its commitment to 86,000 MMBtu/d from 10,000 MMBtu/d, and Anadarko Energy Services — the marketing arm of Occidental — raised its volume by 20% to 120,000 MMBtu/d.

East Daley noted that Matterhorn had been running near capacity as early as late March, with flows to interstate pipelines topping 1.5 Bcf/d and steadily climbing to around 1.6–1.7 Bcf/d in April. Diamondback’s new contract, which began March 1, was a key factor in the higher throughput, the firm said.

Looking ahead, Matterhorn is expected to add another 0.5 Bcf/d of capacity later this year through new compression. With the pipeline already fully contracted, East Daley anticipates strong demand for the additional capacity.

In a further sign of growth potential, Tres Palacios Gas Storage has recently connected with Matterhorn, creating more options for deliveries into Gulf Coast markets, according to the report.