Energy infrastructure giant Kinder Morgan will build a 430-mile natural gas pipeline in Texas, US to transport natural gas produced from the Permian Basin to the markets along the Texas Gulf Coast.
Kinder Morgan did not reveal the investment needed for the project dubbed as the Gulf Coast Express Pipeline Project.
The 42-inch pipeline will stretch from the area near Waha to Agua Dulce, and is expected to be operational by the second half of 2019, depending on shipper commitments.
According to Kinder Morgan natural gas midstream president Duane Kokinda, Auga Dulce for its existing planned pipeline infrastructure is a natural destination for the incremental Permian production.
Kokinda said: “The Gulf Coast Express Pipeline Project connects growing natural gas supplies in the Permian Basin with expanding markets for natural gas on the Texas Gulf Coast, including export markets via liquefied natural gas and deliveries into Mexico, while providing shippers flow assurance and margin enhancement through a wide variety of interconnecting pipelines.”
Kinder Morgan’s new pipeline will be supplied with natural gas sourced from various locations such as the current receipt points along El Paso Natural Gas and KMI’s KMTP pipeline systems in the Permian Basis.
It will also source the 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.
Natural gas from the pipeline will be transported into the Agua Dulce region to the points along the existing Gulf Coast network of KMTP, KM Tejas and KM Border pipelines – the KMI-owned intrastate affiliates, the NET Mexico header, the Spectra Valley Crossing pipeline and various other interstate and intrastate natural gas pipelines.
Towards the end of last month, Kinder Morgan sold 49% of its stake in Elba Liquefaction for nearly $380m to the funds managed by EIG Global Energy Partners.