What’s the issue?
As Permian production continues to ramp up, there is an apparent need for additional takeaway capacity and Matterhorn Pipeline was the first new greenfield pipeline to announce that it had reached a final investment decision to move forward.
Why does it matter?
When Matterhorn announced its final investment decision in May, it stated that its projected in-service date was the third quarter of 2024, but until earlier this month we had seen limited activity that would indicate the project was in fact moving forward.
What’s our view?
In late October and early November, the pipeline started a significant number of condemnation actions in state courts across its footprint. Based on our historical data for past projects, the condemnation activity is a leading indicator that the project can and will be in-service by the end of the third quarter of 2024. The data for the next pipe up, Warrior Pipeline, is consistent with that project not yet being fully committed to going forward.
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