Kinder Morgan and its partners is moving forward with the Permian Highway Pipeline, providing near-term takeaway capacity for the region.
A joint venture between subsidiaries of Kinder Morgan Inc., Kinetik Holdings Inc. and ExxonMobil, Permian Highway Pipeline LLC (PHP) announced on June 29 a final investment decision (FID) to proceed with its expansion project after securing binding firm transportation agreements for all available capacity.
The PHP is an approximately 430-mile pipeline system that currently transports up to 2.1 billion cubic feet per day (Bcf/d) of natural gas from the Waha area in Texas to U.S. Gulf Coast and Mexico markets, and is fully subscribed under long-term, binding agreements.
The expansion project will increase PHP’s capacity by approximately 550 million cubic feet per day (MMcf/d). The project will involve primarily additional compression on PHP to increase natural gas deliveries from the Waha area to multiple mainline connections, Katy, Texas, and various U.S. Gulf Coast markets. Pending the timely receipt of required approvals, the target in-service date for the project is anticipated to be Nov. 1, 2023.
“We are excited to have achieved FID on this very important expansion,” said Kinder Morgan Natural Gas Midstream president Sital Mody. “The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs.”
PHP is jointly owned by subsidiaries of Kinder Morgan, Kinetik Holdings and ExxonMobil, with an ownership interest of 26.7 percent, 53.3 percent and 20 percent, respectively.
“This expansion couldn’t come at a more critical time, as it will foster future natural gas production growth in West Texas and provide several liquefaction facilities along the Texas Gulf Coast with more affordable, reliable supply,” said Jamie Welch, president and CEO of Kinetik. “In addition, approximately 30 of Kinetik’s customers will gain access to premium priced markets and transportation flow assurance, which is critical to minimizing flared volumes.”Tags: Expansion, Kinder Morgan, Permian Highway Pipeline Project