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First Look - Energy Transfer approves construction of new Permian gas pipeline

Oil trades slightly higher, extending gains from yesterday
- Prices have been supported lately by geopolitical risks in the Middle East and expectations of additional Chinese stimulus, while concerns persist over potential oversupply in 2025
- A report from China’s largest oil producer outlined demand risks and projects the country’s oil demand to peak next year, driven by EV and LNG adoption in the transportation sector
China’s crude oil imports jump (BBG)
- Oil imports into China reached a three-month high in November as refiners looked to use up their quota before the end of the year
- Beijing moved to issue more import quotas for independent refiners, which appears to have led to increased buying activity
- Total Chinese crude imports in November were about 11.86 MMBbl/d

Natural gas gave up Monday’s gains this morning, falling 10c to $3.07 by 8 AM CT
- There wasn’t much change in demand projected from weather model runs, but it was warmer
- Energy Transfer greenlights a new major pipeline in the Permian
- Sdfasdfasdf
Energy Transfer approved the construction of a 1.5 Bcf/d intrastate natural gas pipeline
- Formally known as Warrior, ET’s new Hugh Brinson Pipeline will transport gas from West Texas to the Dallas area
- Phase one consists of 400 miles of 42” pipe – connecting to Energy Transfer’s pipeline network and storage
- Phase two would add compression to bring capacity to 2.2 Bcf/d. Customer demand will dictate if phase two is built concurrently with the first
- The first phase is expected to be in service in 2026
- Can someone say Permian takeaway overbuild? Matterhorn, Blackcomb, GCX expansion, now Warrio I mean Hugh Brinson, all by late 2026
  - The Waha forward curve cleans up quickly (price improves beyond ’25 and ‘26) after 2026, likely due to the about 7 Bcf/d of pipe the Permian gets from late ’24 to ‘26