DeLa Express, in association with Moss Lake Partners, launches a pipeline project to transport liquids-rich natural gas from the Permian Basin to the Louisiana coast. The project envisions the construction of a 42-inch, 690-mile pipeline beginning in Loving County, Texas, to serve growing markets, including NLG’s export facilities and NLG’s Hackberry export project. The initiative plans to begin preparations with the Federal Energy Regulatory Commission (FERC) to ensure close collaboration with stakeholders and resolve environmental issues upstream.
Timeline and key infrastructures
DeLa Express is scheduled to file its certificate application with FERC in February 2025, with authorization expected in April 2026 and construction starting in June 2026. Service is scheduled for July 2028. The pipeline will also include four supply laterals in the Permian and a 6.2-mile delivery pipeline in Calcasieu Parish, as well as eight new compressor stations.
Impact on Permian production and constraints
Natural gas production in the Permian Basin has increased rapidly, almost reaching the capacity constraints of existing pipelines. S&P Global forecasts that production will reach almost 24 Bcf/d by December 2028. This growth led to negative prices at the Waha exchange point, a situation which should improve with the commissioning of the 2.5 Bcf/d Matterhorn Express pipeline in the third quarter.
In response to growing production, several midstream operators are actively building gas processing capacity. Two NGL pipelines are under construction: Targa Resources’ 400,000 b/d Daytona pipeline scheduled for the end of the year, and Enterprise Products’ 600,000 b/d Bahia project scheduled for the first half of 2025.
