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
E&P Highlights: Jan. 6, 2025
2025-01-06 - Here’s a roundup of the latest E&P headlines, including company resignations and promotions and the acquisition of an oilfield service and supply company.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
PotlatchDeltic Enters Lithium, Bromine Lease Agreement in Arkansas
2025-02-06 - PotlatchDeltic’s agreement with gives Tetra Brine Leaseco covers about 900 surface acres in Lafayette County, PotlatchDeltic says.
On The Market This Week (Jan. 6, 2025)
2025-01-10 - Here is a roundup of listings marketed by select E&Ps during the week of Jan. 6.
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
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.