Natural gas takeaway capacity from the prolific Permian Basin has increased by 550 million cubic feet per day (MMcf/d) with the in-service of an expansion of Kinder Morgan's Permian Highway Pipeline.

As reported by S&P Global, Kinder Morgan CEO Kimberly Dang announced the expansion's completion during an investor call on December 7th. The expansion uses compression technology to increase capacity on the pipeline, which runs from Waha to Katy, Texas.

This marks the second significant boost to Permian takeaway capacity in recent months.

In September, MPLX and Whitewater Midstream completed a 500 MMcf/d expansion of the Whistler pipeline, while the 2.5 MMcf/d Matterhorn Express Pipeline, also by MPLX and Whitewater, is due online next year.

Dang expressed confidence that current capacity levels are sufficient to meet demand in the near future.

"With over 1 Bcf/d of capacity added in the fourth quarter and Matterhorn coming online next year, we believe the need for a brand-new greenfield pipeline in the Permian won't arise until the back half of the decade," she said.

Despite the increased capacity, Permian gas production continues to climb, reaching a new peak of 19.8 Bcf/d on November 8th. However, the balance between production and takeaway capacity remains tight, leading to volatility at the Waha Hub.

On December 7th, the cash price at Waha dropped to 64 cents per million British thermal units (MMBtu) due to constraints at the El Paso pipeline, with Permian production falling below 19 Bcf/d.