Kinder Morgan, DCP to Develop Natgas Pipeline from Permian Basin to Gulf Coast

Researched by Industrial Info Resources (Sugar Land, Texas)--Kinder Morgan Texas Pipeline LLC, a subsidiary of Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), and DCP Midstream LP (NYSE:DCP) (Houston) have signed a letter of intent to construct the Gulf Coast Express Pipeline, which is designed to ship natural gas from the rapidly developing Permian Basin to growing markets along the Texas Gulf Coast. Industrial Info is tracking the development of the proposed Gulf Coast Express Pipeline and its compressor stations, as well as more than $11.3 billion in active projects involving Kinder Morgan or DCP.

As currently envisioned, the $600 million Gulf Coast Express Pipeline would transport up to 1.7 billion cubic feet per day of natural gas roughly 430 miles from the Waha Oil Field in West Texas to Agua Dulce, Texas, which is about 30 miles west of Corpus Christi. The pipeline is expected to be in service in the third quarter of 2019, subject to shipper commitments. For more details, including contact information and specifications, see Industrial Info's project report.

Industrial Info also is keeping tabs on five compressor stations planned for Gulf Coast Express, each valued at $35 million. Each station will feature a 16,000-horsepower turbine-driven compressor gas package, with auxiliary equipment. For more information, see Industrial Info's project reports for the stations in or near the Texas cities of Fort Stockton, Sanderson, Del Rio, Uvalde and Agua Dulce.

Kinder Morgan says that natural gas will be sourced into the pipeline from multiple locations, including existing receipt points along pipeline systems belonging to the Kinder Morgan family in the Permian Basin; a proposed interconnection with the Trans-Pecos Pipeline; and interconnections to both intrastate and interstate pipeline systems in the Waha area.

"We are excited to be partnering with one of the larger natural gas marketers in the Permian Basin area, with DCP Midstream currently marketing approximately 600 million cubic feet per day of natural gas in that region," said Duane Kokinda, the president of Kinder Morgan Natural Gas Midstream, in a press release. "We believe DCP's strong Permian position, when combined with the downstream market connectivity of Kinder Morgan's Texas Intrastate network, creates a valuable project for both producers and markets."

DCP Midstream, which was officially formed earlier this year, is part of more than $500 million of other active Texas projects being tracked by Industrial Info, including two natural gas-processing plants that are proposed for the Permian Basin area: a $120 million plant in Stanton and a $30 million plant in Midkiff. The Stanton facility, which has faced consistent delays in the past few years, would have a 75 million-standard-cubic-foot-per-day inlet capacity to produce mixed natural gas liquids (NGL), while the Midkiff project would have a 200 million-standard-cubic-foot-per-day inlet capacity to produce 40,000 BBL/d of NGL. For more information, see Industrial Info's project reports for the Stanton and Midkiff projects, or the January 5, 2017, article - DCP Midstream to Become Biggest U.S. NGL Company.

Along the Texas Gulf Coast, Kinder Morgan is proposing a string of natural gas-related projects, including the TGP Lone Star Project, which comprises a $45 million natural gas compressor station in Edna and a $35 million natural gas compressor station in Stinton. The stations would help to transport up to 300 million standard cubic feet of natural gas from an existing receipt point on TGP's existing mainline system to a new point on TGP's 100 Line in Jackson County. Both projects are in their permitting phases. For more information, see Industrial Info's project reports on the Edna and Stinton proposals.

Also on the Texas Gulf Coast, DCP is seeking permits for an $80 million expansion of Eagle Cryogenic Natural Gas Processing Plant Complex in Edna. The project would add a second train to process natural gas from the Eagle Ford Shale, doubling the site's total capacity of 400 million standard cubic feet per day. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.