Strike Construction at Work on $1.5 Billion of Pipelines in Permian, Marcellus, Other Hotspots

Researched by Industrial Info Resources (Sugar Land, Texas)--Strike Construction LLC (The Woodlands, Texas) has a hand in midstream projects spanning the fastest-growing regions for the Oil & Gas Pipeline Industry: the Permian Basin, the Marcellus and Utica shale plays, and Oklahoma's Anadarko Basin. Although heavy demand from the Permian has received the most attention of late, the other formations also are home to extensive projects from major midstream companies. Industrial Info is tracking more than $1.5 billion worth of active projects involving Strike Construction, almost all of which is attributed to natural gas pipelines.

Click on the image at right for a graph detailing active projects involving Strike Construction, by U.S. state.

Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) expects to begin service in the fourth quarter on its Gulf Coast Express pipeline, which will transport up to 1.98 billion cubic feet per day of gas from the Permian Basin to an area near Agua Dulce, Texas, which is just west of Corpus Christi. With the Permian's natural gas production doubling in the last three years, midstream giants are scrambling to propose takeaway projects to relieve its growing glut. Kinder Morgan is ahead of the other industry leaders, with two pipeline projects underway and a third recently proposed.

Strike is serving as general contractor on at least two major components of Gulf Coast Express: the $150 million portion from Midland to Rankin, Texas, running about 50 miles, and the $650 million portion from Rankin to Del Rio, Texas, running about 180 miles. Both components are expected to wrap up in first-quarter 2020. For more information, see Industrial Info's project reports on the Midland-to-Rankin and Rankin-to-Del Rio lines.

Strike also is seeing some alternatives to Permian development begin construction. Oklahoma's SCOOP and STACK plays, each part of the Anadarko Basin, have become more appealing to producers who are wary of the Permian's production glut. In late February, the U.S. Federal Energy Regulatory Commission (FERC) granted notice to proceed to Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Midcontinent Supply Header Interstate Pipeline (MIDSHIP), which is designed to carry about 1.4 billion cubic feet per day of natural gas across Oklahoma to the Texas border, where it will then be sent to various delivery points, including facilities along the Gulf Coast.

The $425 million pipeline will run about 208 miles from Cheniere's Okarche Processing Plant in Kingfisher County to Bennington, which sits on the Texas border; it will be serviced by a $45 million lateral in Kingfisher County and a $35 million lateral in Stephens County, which will connect the pipeline with the Chisholm and Velma processing plants, respectively. For more information, see Industrial Info's project reports on the pipeline, Kingfisher lateral and Stephens lateral.

TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) subsidiary Columbia Gulf Transmission LLC heard some good news earlier this year, when FERC approved its request to put the Kentucky, Mississippi and Tennessee portions of its Gulf XPress Project into service. Strike is serving as general contractor on several compressor stations that will support the 860 million-standard-cubic-foot-per-day Gulf XPress Pipeline, which runs from the Marcellus and Utica shale plays to various points in the U.S. Southeast and Gulf Coast regions. Facilities nearing completion include:

• $45 million station near Grayson, Kentucky; see project report
• $55 million station in Edmonton, Kentucky; see project report
• $55 million station near Nashville, Tennessee; see project report

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