Matador Signs GCX Project Firm Sales Agreement
Matador executed a firm sales agreement for about 115,000 MMBtu with Kinder Morgan beginning on the in-service date of the Gulf Coast Express (GCX) pipeline project.
The GCX Project should be online in October 2019, transporting natural gas from the Permian Basin to Agua Dulce, Texas, near the Texas Gulf Coast.
The GCX project’s proximity to the Gulf Coast and Gulf Coast natural gas pricing, including Houston Ship Channel, are attractive because of the access to industrial users like refineries and petrochemical facilities, utilities, LNG)exports and Mexican markets.
During the first quarter and early in the second quarter of 2018, Matador also entered into agreements with third-party natural gas transportation companies, including El Paso Natural Gas, to secure firm takeaway capacity for all of its anticipated natural gas volumes in both the Wolf and Rustler Breaks asset areas, which represented approximately 93% of Matador’s Delaware Basin natural gas production of 82.8 MMcf/d in the first quarter of 2018.
The agreements should also ensure firm takeaway capacity for anticipated Matador and other producers’ natural gas volumes at the tailgate of San Mateo’s Black River Processing Plant in the Rustler Breaks asset area.
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