Sept 10 (Reuters) - Natural gas pipeline takeaway

capacity in the Permian Basin will increase as the Matterhorn

Express pipeline is expected to start operating this month, the

U.S. Energy Information Administration (EIA) said on Tuesday.

Matterhorn, a joint venture with Whitewater, EnLink

Midstream ( ENLC ), Devon Energy ( DVN ), and MPLX ( MPLX ),

will transport natural gas from the Permian Basin to Katy near

Houston, Texas. The pipeline has a capacity of 2.5 billion cubic

feet per day (Bcf/d).

WHY IT IS IMPORTANT

The EIA suggests that the Matterhorn pipeline could help

narrow or eliminate the price difference between Waha and Henry

Hub by increasing natural gas takeaway capacity from the Permian

Basin.

The Permian basin in West Texas and eastern New Mexico is

the nation's biggest and fastest growing oil-producing shale

basin, is also a major source of natural gas.

CONTEXT

In addition to Matterhorn, three new Permian Basin pipeline

projects have been approved and are being developed, the EIA

said.

These projects are called Apex Pipeline, Blackcomb Pipeline,

and Saguaro Connector Pipeline, and have a combined capacity of

7.3 Bcf/d.

Pipeline operators have also announced additional projects

totaling 7.0 Bcf/d of capacity to move natural gas from the

Permian Basin to key markets in Mexico and along the Texas Gulf

Coast, the EIA said.

These projects, if realized, could become operational

between 2025 and 2028.

BY THE NUMBERS

The lowest price recorded for spot natural gas at the Waha

Hub this year was -$6.41 per million British thermal units on

August 29, the agency said.