WhiteWater, Partners Move Ahead with Eiger Express Pipeline Construction

WhiteWater and its partners have reached a final investment decision (FID) to move ahead with the construction of the Eiger Express Pipeline, the infrastructure firm said on Monday.

Driven by a boom in U.S. liquefied natural gas exports as well as rising demand for natural gas on the back of increasing electricity consumption, gas production in the country's shale fields is expected to rise even as oil output begins to plateau.

U.S. pipeline firms, including Kinder Morgan, Williams and Energy Transfer, have already started to spend billions to build hundreds of miles of new pipe, including in the Northeast, to meet the need for increasing electricity generation and international demand for LNG exports.

The Eiger Express Pipeline is designed to transport up to 2.5 billion cubic feet per day (Bcfpd) of natural gas through about 450 miles of 42-inch pipeline from the Permian Basin to the Gulf Coast region as well as LNG export markets.

WhiteWater and its partners MPLX LP, ONEOK and Enbridge, through their Matterhorn joint venture, reached the decision after securing sufficient transportation deals with primarily investment grade shippers.

Companies typically reach a FID on projects once they have secured enough supply deals to obtain the necessary financing for construction.

Supply for the pipeline will be sourced from multiple connections in the Permian Basin, including gas processing facilities in the Midland Basin, and from the Delaware Basin via the Agua Blanca Pipeline – a joint venture between WhiteWater, Enbridge and MPLX.

The Eiger Express pipeline will be constructed and operated by WhiteWater and is expected to be in service in mid-2028.

The Matterhorn JV owns a 70% stake in the Eiger Express pipeline, and ONEOK and MPLX own 15% each.

ONEOK and MPLX, through the Matterhorn JV, will now own a 25.5% and 22% stake, respectively, in the Eiger Express pipeline.

(Reuters)