Solitude Pipeline Raises Overbuild Concerns in Permian Gas Takeaway
The proposed Solitude Pipeline has raised concerns about overbuild in takeaway capacity for natural gas from the Permian Basin to market. The pipeline, which will move gas to the Katy hub on the Gulf Coast, is part of a larger trend of new projects aimed at easing constraints on moving Permian gas to market. However, analysts at East Daley Analytics say that with 15.8 billion cubic feet per day (Bcf/d) of new capacity coming online between 2026 and 2030, there may be more capacity than needed.
The Solitude Pipeline will consist of two 48-inch pipelines built in two phases, with the first phase scheduled to enter service in late 2029 and the second adding an additional 2.25 Bcf/d in 2030. Combined with other projects already underway, including the Blackcomb, Hugh Brinson, and Eiger Express pipelines, eastbound capacity will reach 22.3 Bcf/d by mid-2028. However, East Daley's modeled volumes don't equal that capacity until 2035, with utilization falling to 80% between 2029 and 2032.
Jack Weixel of East Daley told the Reporter-Telegram that 'there is definitely some concern about overbuild' when it comes to the Solitude Pipeline. He noted that producers are moving to areas with higher gas-oil ratios, such as the Woodford/Barnett benches in the Delaware, which could provide the volume growth needed to fill the pipeline.