![Permian Highway Pipeline, Kinder Morgan, Exxon Mobil](/sites/default/files/styles/hart_news_article_image_640/public/image/2022/06/shutterstock-2146116049.jpg?itok=YlPFDq1s)
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
EQT Marketing Rest of Marcellus Non-op Assets After Equitrans Close
2024-07-23 - EQT Corp. is marketing the remaining 60% interest in its non-operated Northern Marcellus assets as the Appalachia gas giant works to reduce debt following its $5.45 billion acquisition of Equitrans Midstream.
Air Liquide Closes African Divestitures to Adenia Partners
2024-07-23 - Air Liquide’s transaction with Adenia Partners represents total annual sales of approximately 60 million euros (US$65.12 million), less than 10% of Air Liquide’s sales in Africa.
Chevron to Divest 20% Interest Offshore Suriname to QatarEnergy
2024-07-23 - Chevron Corp. will divest a 20% interest to QatarEnergy in a production sharing contract related to Suriname offshore Block 5.
Marketed: Berlin Resources’ Anadarko Basin Opportunity
2024-07-22 - Berlin Resources has retained EnergyNet for the sale of an Anadarko Basin opportunity in the Montgomery 18/19 BO #1H, located in Ellis County, Oklahoma.
Archrock to Buy NatGas Compression Firm TOPS for $983MM
2024-07-22 - The acquisition of Total Operations and Production Services will increase Archrock's compression capacity by 30% to nearly 2.2 million operating horsepower.