The expansion project is expected to increase the company’s natural gas deliveries from the Waha area to several mainline connections, including Katy, Texas, and other US Gulf Coast markets
Permian Highway Pipeline (PHP) has made a final investment decision (FID) for its expansion project that would increase the company’s capacity by around 550 million cubic feet per day (MMcf/d).
The expansion project will increase natural gas deliveries from the Waha area to several mainline connections, including Katy, Texas, and other US Gulf Coast markets.
The company aims to bring the expanded natural gas infrastructure into service in November 2023, subject to the timely receipt of necessary approvals.
PHP said that it has made the FID after it has secured binding firm transportation agreements for all available capacities.
PHP is jointly owned by subsidiaries of Kinder Morgan with 26.7% ownership interest, Kinetik Holdings with 53.3% and ExxonMobil with 20% ownership.
Kinder Morgan is a large-scale energy infrastructure company engaged in the operation of pipelines and terminals that transport natural gas, gasoline, crude oil, and other products.
It owns and operates terminals that store and handle various commodities including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke.
The company owns an interest in and operates around 83,000 miles of pipelines, 141 terminals, and 700 billion cubic feet of working natural gas storage capacity.
Kinder Morgan Natural Gas midstream president Sital Mody said: “The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs.”
Kinetik president and CEO Jamie Welch said: “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.
“In addition, approximately 30 of Kinetik’s customers will gain access to premium-priced markets and transportation flow assurance, which is critical to minimising flared volumes.”