Gulf Coast Express Pipeline (GCX) announced on May 16 an open season to solicit commitments for an expansion project on its system. Upon achieving a final investment decision (FID), the project will increase GCX’s capacity by nearly 570 million cubic feet per day (MMcf/d).
The project will involve primarily compression expansions on the GCX system to increase natural gas deliveries from the Permian Basin to South Texas markets. Pending customer commitments, the target in-service date for the project is December 1, 2023.
GCX is jointly owned by subsidiaries of Kinder Morgan Inc., DCP Midstream LP, an affiliate of ArcLight Capital Partners LLC and Kinetik Holdings Inc. with an ownership interest of 34%, 25%, 25% and 16% respectively. Kinder Morgan Texas Pipeline is the operator of GCX.
Energy firms have increased drilling activity in the Permian in recent months with oil prices over $100 a barrel. That oil comes out of the ground with a lot of gas, called associated gas.
With Permian associated gas production also growing fast and demand for gas rising from new LNG export plants on the Gulf Coast, several companies are looking to add new gas pipes in the region, including units of Energy Transfer.
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