Three Companies, One Pipe, and a Big Bet on Permian Gas

ONEOK, Enbridge, and MPLX advance a joint pipeline after an August 2025 FID, aiming to ease Permian bottlenecks and boost Gulf Coast supply once operational in 2028

28 Aug 2025

The Permian Basin keeps pumping out gas, but getting it to market has become the real challenge. Now, a new pipeline alliance is betting it can ease that pressure and reshape how fuel flows from West Texas to the Gulf Coast.

ONEOK, Enbridge, and MPLX have teamed up on a major natural gas pipeline designed to move supply out of the crowded Permian and toward fast-growing coastal markets. The partners reached a final investment decision in August 2025 and are aiming for a mid-2028 start, pending regulatory approvals.

The proposed line would carry up to 2.5 billion cubic feet of gas per day. That capacity matters. Gas output in the Permian has surged alongside oil drilling, often overwhelming existing takeaway routes. When pipelines fill up, producers face painful price discounts or are forced to flare gas they cannot move.

Meanwhile, demand along the Gulf Coast shows little sign of slowing. Power plants, petrochemical facilities, and liquefied natural gas terminals are all hungry for steady supplies. The new pipeline is meant to bridge that mismatch, sending inland production to markets willing to pay for it.

Each partner brings a different motive to the table. ONEOK has framed the venture as a faster, more reliable way to link supply and demand. Enbridge has pointed to the strategic value of a direct line between the Permian and coastal demand centers. MPLX has stressed the importance of long-term shipping contracts that could underpin revenues once the pipeline is running.

The project also signals a shift in how big midstream bets get made. Pipelines are expensive, slow to permit, and politically sensitive. Sharing ownership spreads financial risk and can make large projects easier to justify, even as critics keep an eye on growing market concentration.

For producers, the payoff could be clearer access to premium markets. For buyers, it promises steadier supplies later in the decade. If the timeline holds, this alliance may offer a preview of how the next generation of US pipelines gets built, together.