Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder Morgan Inc., DCP Midstream LP (DCP Midstream) and an affiliate of Targa Resources Corp. announced a final investment decision to proceed with the Gulf Coast Express Pipeline Project (GCX Project) after having executed definitive joint venture agreements and having secured sufficient firm transportation agreements with shippers.
Approximately 85 percent of the project capacity is subscribed and committed under long-term, binding transportation agreements, and the partners expect that the remaining capacity will be subscribed by early 2018.
Shippers that have committed to the project include, but are not limited to, the following: DCP Midstream, Targa, Apache Corp. and Pioneer Natural Resources Co. KMTP also has committed volumes that are backstopped by a long-term purchase agreement that locks in the equivalent transport fee on the pipeline.
The approximately $1.7 billion GCX Project is designed to transport up to 1.92 billion cubic feet per day (Bcf/d) of natural gas. The GCX Project Mainline portion consists of approximately 82 miles of 36-in. pipeline and 365 miles of 42-in. pipeline originating at the Waha Hub near Coyanosa, Texas in the Permian Basin and terminating near Agua Dulce, Texas. Additionally, the Midland Lateral portion consists of approximately 50 miles of 36-inch pipeline and associated compression, connecting with the GCX Project Mainline.
The project is expected to be in service in October 2019, pending the receipt of necessary regulatory approvals. As previously announced, KMI will build, operate and own a 50 percent interest in the GCX Project, and DCP Midstream and Targa will each hold a 25 percent equity interest in the project. In addition to their transportation agreements, shipper Apache Corporation has an option to purchase up to a 15 percent equity stake in the project from Kinder Morgan.
“We are excited to be moving forward on this much-needed infrastructure project, with construction planned to commence in the first quarter of 2018,” said Duane Kokinda , Kinder Morgan Natural Gas Midstream president. “We’re very pleased to have secured the commitments needed for all parties to proceed. The remaining available capacity continues to be marketed to interested shippers and may be offered as part of a binding open season in January 2018. With this important milestone reached, the project is now included in Kinder Morgan’s backlog.”Tags: DCP Midstream, Gulf Coast Express Pipeline, Kinder Morgan, Kinder Morgan Texas Pipeline, Permian Basin, Targa Resources Corp., Texas