Market Solution: New Pipeline Capacity Dwarfs Flared Gas Volumes in the Permian

Texans for Natural Gas

The proposed pipeline capacity expected to come online in the Permian Basin over the next three years is vastly greater than the estimated volumes of flared gas, according to a Texans for Natural Gas analysis.

Recent media reports have called attention to flaring levels in the Permian as production has increased, with one environmental group even suggesting that the market can’t solve the issue. But the new pipeline capacity being added over the next few years appears to contradict that claim.


Increasing natural gas pipeline capacity out of the Permian represents a major economic opportunity, and companies are responding to that opportunity with multi-billion-dollar investments. A TNG review found an estimated 14 billion cubic feet per day (Bcf/d) in additional natural gas pipeline capacity set to come online in the Permian by the end of 2022. This equates to more than five trillion cubic feet of natural gas annually.


That proposed capacity is about 93 times larger than the current flaring levels, according to data from the Texas Railroad Commission.



Benefits of Pipelines


Building out this new pipeline capacity has benefits beyond mitigating flaring.


Pipelines are critical for the future of the Texas economy. While the state is home to over 440,000 miles of pipeline already, more are needed to keep the Texas energy boom going, as the Lone Star State continues to break record after record for oil and gas production – especially in the Permian.


Along with carrying the oil and natural gas that fuel our economy, pipelines themselves provide significant economic benefits. It is estimated that additional Texas pipeline development could support an average of 171,000 jobs per year, with one report concluding that pipelines generate over $1.6 billion in annual state and local tax revenue in Texas.

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