Permian Highway Pipeline Expansion Gets Investment Green Light

Researched by Industrial Info Resources (Sugar Land, Texas)--Permian Highway Pipeline LLC (PHP) has announced a final investment decision (FID) to proceed with its expansion project.

PHP, which is jointly owned by subsidiaries of Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), Kinetik Holdings Incorporated (NASDAQ:KNTK) (Houston) and Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), said the expansion project got the go-ahead after securing binding firm transportation agreements for all available capacity.

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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 anticipated to be November 1, 2023.

"We are excited to have achieved FID on this very important expansion," Kinder Morgan Natural Gas Midstream President Sital Mody said in a press release. "The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs."

"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," said Jamie Welch, chief executive officer of Kinetik. "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."

The PHP began full commercial operations on January 1, 2021, providing about 2.1 billion cubic feet per day of capacity.

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