Permian Highway Pipeline announced a final investment decision to proceed with its expansion project on June 29. (Source: Eko Eko / Shutterstock.com)
Permian Highway Pipeline LLC reached final investment decision (FID) to proceed with its expansion project that will increase the company's capacity by approximately 550 MMcf/d, a company release announced on June 29.
The project secured binding firm transportation agreements for all available capacity and now intends to begin production on Nov. 1, 2023 pending the receipt of required approvals.
Currently operating at 2.1 Bcf/d capacity, Permian Highway Pipeline is owned collectively by subsidiaries of Kinetik Holdings Inc. (53.3%), Kinder Morgan Inc. (26%) and ExxonMobil Corp (20%).
“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,” Kinetik president and CEO Jamie Welch said in the release. “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.”
In addition to boosting Permian Highway Pipeline's capacity, the project will allow the company to increase natural gas deliveries from the Waha area in West Texas to multiple mainline connections, Katy, Texas, and various U.S. Gulf Coast markets.
“The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs,” Sital Mody, natural gas midstream president of Kinder Morgan, added.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Fourth Week in a Row
2024-09-06 - The oil and gas rig count fell by one to 582 in the week to Sept. 6, the lowest since June.
Baker Hughes: US Oil, Gas Rig Count Steady This Week, Down Two in October
2024-10-25 - U.S. energy firms kept the number of oil and natural gas rigs unchanged this week.
US Oil, Gas Rig Count Holds Steady for Record Third Week
2024-11-08 - The oil and gas rig count was steady at 585 in the week to Nov. 8, Baker Hughes said on Nov. 8. Baker Hughes said that puts the total rig count down 31 rigs, or 5% below this time last year.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-09-13 - The oil and gas rig count rose by eight in the week to Sept. 13 to 590, returning to mid-June levels. The increase was the biggest since the week to Sept. 15, 2023.
US Drillers Cut Oil, Gas rigs for the Fourth Time in Five Weeks
2024-10-18 - The oil and gas rig count fell by one to 585 in the week to Oct. 18. Baker Hughes said that puts the total rig count down 39 rigs, or 6% below this time last year.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.