
The pipeline, which officially started service on July 1, is designed to be expandable to 2.5 Bcf/d. (Source: Shutterstock)
Editor's note: This article has been updated with additional analyst commentary.
The 1.7 Bcf/d ADCC Pipeline began commercial service at the start of the third quarter, connecting Permian Basin natural gas to Cheniere's Corpus Christi LNG export facility.
The 40-mile natural gas line runs from the terminus of the Whistler Pipeline in Agua Dulce, Texas, and provides Cheniere with direct access to Permian and Eagle Ford Shale volumes in addition to gas sourced along the Gulf Coast, according to a July 12 press release.
The pipeline, which officially started service on July 1, is designed to be expandable to 2.5 Bcf/d.
The 40-mile, 42-inch line is expected to help reduce flared volumes in the Permian Basin and further support U.S. LNG exports to global markets. East Daley Analytics said it does not expect a big shift in basin dynamics given that Whistler Pipeline already runs full at about 2.5 Bcf/d.

Alex Gafford, an analyst at East Daley, said the ADCC Pipeline is designed to transport to support Cheniere’s Stage 3 expansion at Corpus Christi with supply connections into Whistler and Agua Dulce hub.
“Cheniere is building seven midscale trains capable of producing over 10 Mtpa of LNG (~1.3 Bcf/d),” Gafford said in an email. “In Cheniere’s 1Q24 earnings update in May, executives said the CCL Stage 3 expansion is on track to make first LNG by YE24, and predicted that all seven trains would be brought into service over the 2025-26 period.”
The ADCC line will give Cheniere more flexibility to source gas at Corpus Christi, particularly in in the second half of 2024 and early 2025, when demand from the Stage 3 expansion is unavailable.
Currently, the facility is only served by the Corpus Christi Pipeline.
“The new pipe will move Permian gas further downstream via Whistler and provide access to Eagle Ford supply at the Agua Dulce hub,” he said.
However, East Daley does not expect a big shift in basin dynamics with ADCC online, given that Whistler Pipeline already runs full at ~2.5 Bcf/d to Agua Dulce, Gafford said.
“Looking further out, we expect new LNG demand from projects like CCL Stage 3 will create big shifts in the South Texas market later this decade,” he said. “However, Matterhorn pipeline is expected to start taking line fill this month and be fully operational by September adding 2.5 Bcf/d of egress from the Permian into the Katy market.”
Matterhorn will provide much needed egress from the Permian and will lift Waha pricing out of the negatives through 2026.
The ADCC Pipeline 70% owned by Whistler Pipeline LLC, a joint venture between WhiteWater (50.6%), MPLX LP and Enbridge (19%). The remaining 30% is wholly owned by Cheniere.
Recommended Reading
Energy Transfer’s Lake Charles LNG Closer to FID with Chevron Deal
2024-12-19 - Energy Transfer entered a 20-year agreement to supply Chevron with 2 mtpa of LNG from its Lake Charles LNG export facility, which is awaiting a final investment decision.
Crescent Upsizes Stock Offering, Offers Debt for Ridgemar Acquisition
2024-12-04 - Crescent Energy is offering 21.5 million shares of its stock and borrowing additional funds to pay for the cash portion of a $905 million acquisition of Ridgemar Energy.
CNX’s $505MM Bolt-On Adds Marcellus, Deep Utica in Pennsylvania
2024-12-05 - CNX Resources CEO Nick Deluliis said the deal to buy Apex Energy underscores CNX’s confidence in the stacked pay development opportunities unlocked in the deep Utica.
Crescent Energy Bolts On $905MM Central Eagle Ford Acreage
2024-12-03 - Crescent Energy will purchase Eagle Ford assets from Carnelian Energy Capital Management-backed Ridgemar Energy for $905 million, plus WTI-based contingency payments of up to $170 million.
Firms Take Fight Against $132MM Martin Midstream Merger
2024-12-02 - Nut Tree Capital Management and Caspian Capital accused Martin Resource Management of proposing an insider deal that undervalues the cost of Martin Midstream’s shares.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.