The cooperative nature of the global energy market has been a major driving force for several operations that plan to reach new heights. To develop certain projects, companies often form joint ventures that leverage the expertise of the companies involved to advance projects to reach operational status. The United States has been progressing toward an increased reliance on the gas market as the nation dominates the international gas sector, producing more gas than any other nation. Now, a new conduit known as the Blackcomb Pipeline is reaching towards a 2026 commissioning date.
Joint ventures are often the only way to progress projects towards realization
Joint ventures serve an important purpose across the global energy market. Companies may struggle with certain aspects of a project, and often opt to bring on board other substantially large energy companies to progress operations towards actual, on-the-ground commissioning. With the increased output expected in the US market due to the new focus from the federal government, 2026 is looking good for the US energy market.
The Blackcomb Pipeline project was specifically designed to transport up to 2.5 billion cubic feet per day through an astonishing estimated 365 miles of 42-inch pipeline that will run from the Permian basin to processing facilities in South Texas. The supply of gas that will run through the Blackcomb Pipeline will be sourced from several operations in the Permian Basin.
A new joint venture has been created to advance the Blackcomb Pipeline project
Notably, WhiteWater, a US-based energy company, has formed a joint venture that already owns and operates the Whistler Pipeline to develop the Blackcomb Pipeline. The WPC Joint Venture brings WhiteWater together with Targa Resources to hopefully reach a final investment decision on the planned Blackcomby Pipeline next year.
“We are excited to partner with Targa by leveraging Whistler’s expansive footprint in Waha and Agua Dulce to develop the Blackcomb Pipeline. Blackcomb will provide much needed incremental natural gas takeaway capacity for Permian shippers.” – Christer Rundlof, CEO of WhiteWater
The plan, according to the joint venture, is to reach a final investment decision on the Blackcomb Pipeline project after it has secured a number of agreements with predominantly investment-grade shippers, including:
- Devon Energy Corporation
- Diamondback Energy Inc
- Marathon Petroleum Corporation
- Targa Resources
The WPC joint venture will bring invaluable assets to the project, as it has significant long-haul natural gas pipelines that regularly transport natural gas from the Permian basin to processing facilities in Texas. The WPC joint venture owns and operates several pipelines and processing sites in the Permian basin, including but not limited to:
- Whistler Pipeline
- Rio Bravo Pipeline
- 70% of the Blackcomb Pipeline
- 70% of the ADCC Pipeline
- 50% of the Waha Gas Storage facility
Targa Resources, which forms part of the WPC joint venture, has been developing its plans to build a new 500-mile ‘Speedway’ pipeline in the Permian, exemplifying the substantial assets it brings to the Blackcomb pipeline project. Joint ventures are often the only method to develop energy infrastructure needed to advance projects beyond the planning phase.
The Blackcomb Pipeline project still has a few regulatory barriers to navigate
While the new joint venture will progress the project to reach a final investment decision in the new year, the project is yet to receive the approval of regulators, but expectations are that the process will run smoothly over the coming months as it targets a 2026 operational commencement. The Permian Basin has long been the cornerstone of the US gas market, and over the years, it has attracted interest from some of the largest energy companies in the world, such as the Eiger Express Pipeline, which is also being developed by WhiteWater and its associates.
