New Natural Gas Pipelines Spring Forth from Permian

Researched by Industrial Info Resources (Sugar Land, Texas)--The Permian Basin has no shortage of new natural gas pipeline projects.

In a Today in Energy report last week, the U.S. Energy Information Administration noted several recently announced projects.

"The projects are being driven by the need to grow natural gas production in the Permian and in order to provide reliable supplies of natural gas to the Gulf Coast to help meet global and domestic energy demand," said Jesus Davis, Industrial Info's research specialist for the oil and gas production, pipelines and terminals industries.

Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) has its hand in two expansion projects.

In late June, the pipeline company announced a final investment decision for the Permian Highway Pipeline (PHP) expansion. The project will increase PHP's capacity by about 550 million cubic feet per day. The project will primarily involve additional compression on PHP to increase natural gas deliveries from the Waha area to multiple mainline connections, Katy, Texas, and various U.S. Gulf Coast markets.

The targeted in-service date for the project is November 1, 2023. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for a list of active PHP expansion project reports. For related information, see July 1, 2022, article - Permian Highway Pipeline Expansion Gets Investment Green Light.

In May, Kinder Morgan announced an open season to solicit commitments for its Gulf Coast Express (GCX) Pipeline expansion. The project would expand compression on the pipeline, increasing capacity by 0.57 billion cubic feet per day (Bcf/d) to 2.55 Bcf/d. GCX is jointly owned by subsidiaries of Kinder Morgan, DCP Midstream LP (NYSE:DCP) (Denver, Colorado), an affiliate of ArcLight Capital Partners, LLC (Boston, Massachusetts) and Kinetik Holdings Incorporated (NASDAQ:KNTK) (Houston, Texas) with an ownership interest of 34%, 25%, 25% and 16%, respectively. The project is expected to enter service in December 2023. Subscribers can click here for a list of active Gulf Coast Express projects.

MPLX LP (NYSE:MPLX) (Finlay, Ohio) and its partners, meanwhile, are expanding the Whistler Pipeline by installing three new compressor stations, increasing capacity by 0.5 Bcf/d to 2.5 Bcf/d, with completion expected in September 2023. The Whistler Pipeline is a 450-mile, 42-inch diameter intrastate pipeline that transports natural gas from the Waha Header in the Permian Basin to Agua Dulce, Texas, providing direct access to South Texas and export markets. Subscribers can click here for a list of Whistler pipeline capacity expansion projects.

One new grassroot project is the Matterhorn Express Pipeline. A final investment decision for the project was announced on May 19. The pipeline would transport up to 2.5 Bcf/d of natural gas 490 miles from Waha, Texas, to the Katy area near Houston. Supply for the pipeline will be sourced from upstream connections in the Permian Basin, said the developers, who include WhiteWater (Austin, Texas), EnLink Midstream, LLC (NYSE:ENLC) (Dallas, Texas), Devon Energy Corporation (NYSE:DVN) (Oklahoma City, Oklahoma), and MPLX LP. The developers said they expect the pipeline to be in service in the third quarter of 2024. Subscribers can click here for the related project report.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in the article, and click here for a list of related plant profiles.

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