Matador Resources Co, a Dallas-based oil and gas producer, has recently finalized several agreements with Energy Transfer LP to supply natural gas and market natural gas liquids (NGLs). This move aims to enhance Matador’s pricing strategy by reducing reliance on the Waha Hub prices in the latter half of 2026. The agreements also include selling NGLs from multiple sources within the Delaware Basin to various Energy Transfer affiliates.
In a prior step to support its natural gas distribution, Matador secured firm transportation capacity on Energy Transfer’s Hugh Brinson Pipeline project last year. This pipeline will transport 500 million British thermal units (MMBtu) per day of gas from the Permian Basin to markets where demand and prices have traditionally been higher than those at Waha Hub. Matador expects the new supply agreement to bridge the period before its transportation contract on the Hugh Brinson Pipeline becomes effective, allowing it to capture better prices for a portion of its gas production in the second half of 2026.
Energy Transfer, also headquartered in Dallas, is preparing to launch phase one of the Hugh Brinson Pipeline by year-end. This initial phase includes a 400-mile, 42-inch mainline extending from Waha, Texas, to Maypearl, Texas, with a capacity of up to 1.5 billion cubic feet per day (Bcfd). It also features the Midland Lateral, a 42-mile, 36-inch pipeline connecting the mainline to processing plants owned by Energy Transfer and third parties. A second phase is planned to add compression facilities that will increase capacity to approximately 2.2 Bcfd.
The pipeline project is designed to link shippers with Energy Transfer’s existing intrastate pipeline network and other downstream connections, providing access to prominent markets and trading hubs across Texas such as Carthage and Katy. Energy Transfer envisions this infrastructure as a key component supporting growth in power generation and artificial intelligence-driven data centers within Texas. The project carries an estimated budget of $2.7 billion.
Meanwhile, underground natural gas storage capacity in the United States saw modest growth in 2025, concentrated mainly in the South Central and Mountain regions. According to data from the US Energy Information Administration (EIA), demonstrated peak capacity—the highest volume of working gas stored over a five-year period—increased by 0.1%, or 6 billion cubic feet (Bcf), marking three consecutive years of growth. Working gas design capacity also rose by 26 Bcf to reach a total of 4,683 Bcf.
The South Central region led capacity increases with an addition of 21 Bcf, while the Mountain region added 6 Bcf. In contrast, some regions like the East experienced declines due to base gas adjustments. These storage expansions are crucial for balancing energy demand spikes and ensuring supply reliability across the Lower 48 states.
On an international front, Serbia has secured a three-month extension of its natural gas supply contract with Russian supplier Gazprom until late September. Serbia’s Energy Minister Dubravka Djedovic Handanovic emphasized that this extension provides stable and affordable deliveries vital for the country’s economy and citizens. While Russian gas meets about 90% of Serbia’s needs, Belgrade continues efforts to diversify its sources through imports from Azerbaijan and liquefied natural gas terminals in Greece.
Together, these developments illustrate ongoing efforts within North America and Europe to strengthen natural gas supply chains and storage capabilities amid evolving market demands and geopolitical considerations.
