Permian Highway Pipeline announced a final investment decision to proceed with its expansion project on June 29. (Source: Eko Eko / Shutterstock.com)
Permian Highway Pipeline LLC reached final investment decision (FID) to proceed with its expansion project that will increase the company's capacity by approximately 550 MMcf/d, a company release announced on June 29.
The project secured binding firm transportation agreements for all available capacity and now intends to begin production on Nov. 1, 2023 pending the receipt of required approvals.
Currently operating at 2.1 Bcf/d capacity, Permian Highway Pipeline is owned collectively by subsidiaries of Kinetik Holdings Inc. (53.3%), Kinder Morgan Inc. (26%) and ExxonMobil Corp (20%).
“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,” Kinetik president and CEO Jamie Welch said in the release. “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.”
In addition to boosting Permian Highway Pipeline's capacity, the project will allow the company to increase natural gas deliveries from the Waha area in West Texas to multiple mainline connections, Katy, Texas, and various U.S. Gulf Coast markets.
“The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs,” Sital Mody, natural gas midstream president of Kinder Morgan, added.
Recommended Reading
OPEC Gets Updated Plans From Iraq, Kazakhstan on Overproduction Compensation
2024-08-22 - OPEC and other producers including Russia, known as OPEC+, have implemented a series of output cuts since late 2022 to support the market.
Avant Natural Resources Steps Out with North Delaware Avalon Tests
2024-08-21 - With the core of the Delaware Basin in full manufacturing mode, Avant Natural Resources is pushing an operated portfolio into the northern reaches of the New Mexico Delaware.
Powder in the Hole: Devon May Fire up its PRB in Coming Years
2024-08-23 - Devon Energy is perfecting its spacing and completion recipe in Wyoming’s Powder River Basin play to possibly unleash full-field development later this decade.
In Ohio’s Utica Shale, Oil Wildcatters Are at Home
2024-08-23 - The state was a fast-follower in launching the U.S. and world oil industry, and millions of barrels of economic oil are still being found there today.
US Drillers Cut Oil, Gas Rigs for Fifth Time in Six Weeks
2024-07-12 - The oil and gas rig count, an early indicator of future output, fell by one to 584 in the week to July 12.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.