A New Pipeline of Profits: I Squared, Enbridge, and MPLX’s Strategic Bet on Matterhorn

The energy infrastructure boom in North America is entering a new phase, and one of its most consequential moves yet involves a trio of heavyweights: I Squared Capital, Enbridge Inc. (ENB), and MPLX LP (MPLX). Together, they have secured a majority stake in the Matterhorn Express Pipeline, a critical artery linking the Permian Basin’s prolific natural gas reserves to Texas’s refining hubs. This $5 billion bet—structured as a 65% majority stake for a WhiteWater Development LLC consortium backed by I Squared and First Infrastructure Capital Advisors, plus 10% each for Enbridge and MPLX—positions the partners to capitalize on a surging market for Permian gas.

The Deal’s Anatomy

The Matterhorn Express Pipeline spans 580 miles, transporting up to 2.5 billion cubic feet of natural gas per day from the Permian Basin to Houston’s Katy area. Operated since late 2024, it serves as a lifeline for shale producers seeking to move gas to high-demand markets, including LNG export terminals and petrochemical plants. The consortium’s acquisition—finalized in 2024 but with updates as recent as May 2025—reflects a strategic calculus:

• I Squared’s 65% stake (via WhiteWater) leverages its $45 billion infrastructure portfolio and expertise in energy projects like the 2023 Whistler pipeline acquisition.
• MPLX’s 15% stake (after a $151 million boost to its initial 10%) underscores its role as a midstream logistics leader, connecting Permian production to refining markets.
• Enbridge’s 10% share aligns with its broader U.S. gas infrastructure expansion, including its 70% stake in the adjacent Matterhorn system.

The pipeline’s valuation—reported at over $5 billion including debt—hints at its scale. But its true value lies in its strategic location: the Permian Basin accounts for roughly 40% of U.S. natural gas production, yet its gas struggles to reach markets beyond Texas. Matterhorn’s route directly addresses this gap.

Why This Matters Now

The Permian Basin’s gas output is projected to grow by 15% annually through 2027, driven by rising oil production and associated gas. Yet pipeline constraints have led to periodic flaring—a wasteful and environmentally harmful practice. Matterhorn’s 2.5 Bcf/day capacity could alleviate this, reducing flaring while enabling producers to monetize their gas.

For investors, the pipeline’s operational economics are compelling. Midstream assets like Matterhorn typically yield stable cash flows through long-term contracts with shippers. With 80% of Matterhorn’s capacity already under firm commitments, the pipeline’s revenue stream is predictable—a rare commodity in volatile energy markets.

Risks and Reckoning

No infrastructure project is without risks. Regulatory hurdles, such as state-level permitting delays, could disrupt operations. Meanwhile, a slowdown in Permian drilling or a plunge in natural gas prices could reduce demand. But the pipeline’s diversified revenue model—serving power plants, industrial users, and LNG exporters—buffers it against single-sector downturns.

Environmental scrutiny is another wildcard. While Matterhorn’s backers tout its role in reducing flaring, environmental groups may challenge its carbon footprint. Yet the project’s alignment with Biden administration goals—such as boosting domestic energy exports—could provide political cover.

The Bottom Line

The Matterhorn Express Pipeline is no mere infrastructure play; it’s a strategic chokepoint in the U.S. energy economy. With Permian gas production set to hit 19 billion cubic feet per day by 2027, Matterhorn’s capacity represents 13% of that total—a critical margin of transport.

For Enbridge and MPLX, the deal deepens their midstream dominance. For I Squared, it’s a bold bet on a sector where infrastructure deficits remain vast. And for investors, the pipeline’s steady cash flows and growth potential make it a rare “win-win” in an industry rife with volatility.

In the end, Matterhorn isn’t just about moving gas—it’s about moving markets.

Conclusion
The Matterhorn Express Pipeline stands at the intersection of energy demand, infrastructure scarcity, and strategic capital. With its 2.5 Bcf/day capacity, $5 billion valuation, and a consortium backed by I Squared’s financial muscle and Enbridge/MPLX’s operational prowess, this project is a template for 21st-century energy investments. As Permian production surges and global LNG demand grows, Matterhorn’s owners are poised to profit—not just from today’s gas flows, but from the infrastructure’s enduring role in shaping North America’s energy future.

The data tells the story: Matterhorn isn’t just a pipeline. It’s a pipeline to profit.