Permian Highway Pipeline LLC (PHP) on April 25 launched a binding open season for an expansion project set to increase natural gas takeaway from the Permian Basin to the Gulf Coast.
The Permian Highway Pipeline is an approximately 430-mile pipeline system that transports up to 2.1 Bcf/d of natural gas from the Waha area in Texas to U.S. Gulf Coast and Mexico markets.
The expansion project will involve primarily compression expansions on PHP to increase natural gas deliveries from the Waha area to multiple mainline connections, Katy, Texas and various U.S. Gulf Coast markets, according to a company release from Kinder Morgan Inc.
Upon achieving a final investment decision (FID), the project will increase PHP’s capacity by nearly 650 MMcf/d, the release said. A foundation shipper has already executed long-term binding transportation agreements for half of this expansion capacity.
The Permian High Pipeline , which is fully subscribed under long-term, binding agreements, began full commercial in-service on Jan. 1, 2021.
The binding open season announced April 25 is to solicit commitments for the expansion project on the PHP system. Pending additional customer commitments, the target in-service date for the expansion project is Oct. 1, 2023.
PHP is jointly owned by subsidiaries of Kinder Morgan Inc., Kinetik Holdings Inc. and Exxon Mobil Corp. with an ownership interest of 26.7%, 53.3% and 20%, respectively. Kinder Morgan Texas Pipeline is the operator of PHP.
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