The $2bn pipeline delivers approximately 2.1 billion ft3 per day of natural gas from Texas to US Gulf Coast and Mexico
The PHP Project will provide an outlet to the increased natural gas which is produced from the Permian Basin in West Texas to the growing market areas along the Texas Gulf Coast. (Credit: David Mark from Pixabay)
Texas, US-based energy infrastructure company Kinder Morgan, along with partners, has announced commencement of commercial in-service of the Permian Highway Pipeline (PHP).
For several weeks before achieving the full commercial in-service, the pipeline has been flowing volumes during the commissioning process.
The approximately 430-mile, 42-inch pipeline delivers natural gas from Waha, Katy in the Texas area to the US Gulf Coast and Mexico.
The PHP provides approximately 2.1 billion ft3 per day of natural gas under long-term contracts. This project is expected to help reduce Permian Basin natural gas flaming.
Kinder Morgan natural gas midstream president Sital Mody said “We are extremely pleased to have placed PHP in service. We are very proud of our team’s ability to execute and that we were able to complete this critical infrastructure project in the midst of a global pandemic. PHP will continue to provide environmental benefits and economic value to the State of Texas for many years to come.
“We believe that the Permian Basin will remain an important supply basin for decades, and our strong network of pipelines provides the ability to connect this supply to critical markets along the Gulf Coast.”
Kinder Morgan Texas Pipeline (KMTP), a subsidiary of KMI, is the operator of the pipeline.
KMTP, EagleClaw Midstream and Altus Midstream each hold an ownership interest of around 26.7% in the pipeline, while an affiliate of an anchor shipper holds a 20% interest.
The project has been developed at approximately $2bn.
In June 2019, Kinder Morgan secured a favourable ruling in a Texas district court with the judge dismissing a lawsuit challenging the construction of $2bn (£1.58bn) Permian Highway Pipeline project along Texas Hill Country.