ONEOK announces joint venture for Permian Basin natural gas pipeline

ONEOK Inc. (NYSE: OKE), WhiteWater, MPLX LP (NYSE: MPLX) and Enbridge Inc. (NYSE: ENB) announced plans for a natural gas pipeline to transport production from the Permian Basin to the Gulf Coast region, according to a company statement.

The Eiger Express Pipeline will span approximately 450 miles with a 42-inch diameter and is designed to transport up to 2.5 billion cubic feet per day of natural gas from West Texas to the Katy area near Houston. The pipeline will hold reserved capacity for deliveries to Corpus Christi, Texas.

The joint venture is owned 70% by the existing Matterhorn joint venture, 15% by ONEOK and 15% by MPLX. ONEOK's total ownership interest in the pipeline is 25.5%, which includes its ownership stake in the Matterhorn joint venture.

"This important infrastructure project is needed to provide additional transportation capacity out of the highly productive Permian Basin," said Pierce H. Norton II, ONEOK president and chief executive officer.

The pipeline is supported by firm transportation agreements with contract terms of 10 years or longer. WhiteWater will construct and operate the pipeline, which is expected to be completed in mid-2028, pending regulatory and other approvals.

The pipeline will source natural gas from processing facilities, including those owned by ONEOK and MPLX, and pipeline connections in the Midland and Delaware basins. The project aims to serve growing natural gas demand markets for electricity generation and liquefied natural gas exports.

The Matterhorn joint venture is owned by WhiteWater (65%), ONEOK (15%), MPLX (10%) and Enbridge (10%). The joint venture owns long-haul natural gas pipelines that transport natural gas from the Permian Basin to the Gulf Coast with connections to LNG export markets.

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