Natural gas processor DCP Midstream will partner Kinder Morgan Texas Pipeline (KMTP) in the development of the proposed 430-mile Gulf Coast Express Pipeline Project in the US.

KMTP, the subsidiary of energy infrastructure giant Kinder Morgan, will build and operate the pipeline that will supply natural gas produced from the Permian Basin to emerging markets along the Texas Gulf Coast.  

On the other hand, DCP is expected to be a partner and shipper on the proposed 42-inch pipeline stretching from Waha to Agua Dulce regions in Texas.

DCP Midstream chairman, president and CEO Wouter van Kempen said: “This opportunity presents a welcome competitive alternative that adds diversity to the market and is complementary to our recently announced Sand Hills expansion.

“DCP has a premier portfolio of integrated assets in the Permian offering a full range of services and solutions to our customers.”

The Gulf Coast Express Pipeline Project has been designed to carry up to 1,700,000 dekatherms per day (Dth/d) of natural gas.

Based on shipper commitments, the Texas pipeline project is likely to be operational in the latter half of 2019.

Kinder Morgan Natural Gas Midstream president Duane Kokinda said: “We are excited to be partnering with one of the larger natural gas marketers in the Permian Basin area, with DCP Midstream currently marketing approximately 600 million cubic feet per day of natural gas in that region.

“We believe DCP’s strong Permian position, when combined with the downstream market connectivity of Kinder Morgan’s Texas Intrastate network, creates a valuable project for both producers and markets.”

The pipeline project will source natural gas from multiple sites like the receipt points present along the El Paso Natural Gas and KMI’s KMTP pipeline structures in the Permian Basis.

Additionally, it will be supplied with natural gas from an interconnection proposed with the Trans-Pecos Pipeline along with more interconnections to both interstate and intrastate pipeline systems in the Waha region.

Image: Kinder Morgan’s Elba LNG Terminal. Photo: courtesy of Kinder Morgan.