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.

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