Natural gas infrastructure development remains strong heading into H2 2025, driven primarily by LNG export demand. While large-scale crude oil pipeline projects are unlikely this year, several major natural gas pipelines are under construction or nearing completion.
Key Projects Moving Forward:
Near-Term Deliveries (Q4 2025)
- Black Fin Pipeline: 3.5 Bcf/d capacity expected in service Q4 2025
- Louisiana Gateway Pipeline: 1.8 Bcf/d capacity expected in service Q4 2025
Projects Awaiting Final Investment Decision
- Saguaro Connector Pipeline: Mexico Pacific still working on project financing for facilities in Mexican territory
Regional Activity Hotspots:
Permian Basin
Activity remains elevated with multiple projects targeting LNG export markets. Most pipelines built recently serve Houston-area LNG facilities, but two new intrastate projects will deliver gas to the Texas-Louisiana border region.
Major Upcoming Projects:
- Matterhorn Express Pipeline: 2.5 Bcf/d capacity from Permian to Houston area, starting Q4 2025
- Apex Pipeline: 2 Bcf/d to Port Arthur, Texas (2026 target, Targa Resources)
- Blackcomb Pipeline: 2.5 Bcf/d connecting Permian to Agua Dulce (2026 target, Whitewater Midstream)
Other announced projects could add 7 Bcf/d of capacity between 2025 and 2028, targeting markets in Mexico and along the Texas Gulf Coast.
Haynesville Basin
The dry gas basin has gained momentum due to higher prices and LNG demand forecasts.
Key Development:
- New Generation Gas Gathering (NG3): 275 miles of gathering pipelines with 2.2 Bcf/d capacity, full operation expected Q4 2025 (Momentum Midstream)
Marcellus and Utica Regions
Ongoing bottlenecks continue to restrict production growth. Recent developments include the site of the Leach Xpress pipeline, which is a recent victory for midstream in the Marcellus region.
Regulatory Environment:
Positive Developments
- Reinstatement of Williams Companies’ Transco Regional Energy Access expansion project certificate in January 2025, designed to ease supply constraints in Pennsylvania, New Jersey and Maryland.
- Interior Secretary Doug Burgum announced plans to open more acreage for oil and gas leasing
- Alaska developments include reopening 82% of National Petroleum Reserve and 1.56-million-acre Arctic National Wildlife Refuge Coastal Plain
- Restrictions lifted on Trans-Alaska Pipeline Corridor and Dalton Highway lands
Oneok Achievements (Late 2024)
- Completed 125,000-bpd MB-6 NGL fractionator in Mont Belvieu, Texas
- Full looping of West Texas NGL Pipeline system
- Boosted fractionation capacity to over 1 MMbpd
- Expanded West Texas NGL Pipeline capacity to 515,000 bpd (740,000 bpd with mid-2025 pump station additions)
Ongoing Challenges
- Permitting and legal risks remain significant, especially for LNG-linked projects
- Environmental advocacy activities continue in historically sensitive regions
- Court challenges pose potential high costs for project development
Market Outlook:
86% of planned projects are concentrated in the South-Central region, primarily Texas and Louisiana. This concentration is directly tied to Gulf Coast LNG export terminal demand, driving continued pipeline construction from Permian and Haynesville production areas.
Additional announced projects could add 7 Bcf/d of capacity, targeting Mexico and Texas Gulf Coast markets.
Current U.S. LNG Export Capacity
- Operational: ~90 mtpa
- Under Construction: 80 mtpa
- Planned: 141 mtpa
- Proposed: 115 mtpa
Key Considerations for Project Managers
- Focus Areas: Natural gas infrastructure, particularly LNG-supporting projects
- Geographic Concentration: South Central U.S. (Texas/Louisiana)
- Risk Factors: Legal challenges, permitting delays, environmental opposition
- Market Drivers: LNG export demand, production bottleneck relief
- Timing: Most major completions expected Q4 2025 and 2026
At KBCm, we are midstream CMs with boots on the ground experience to work alongside your internal teams from conceptual design to project close out. Contact Michael Green at (361) 703-9671 for more information.
