In order to continue with its expansion project, Permian Highway Pipeline LLC (PHP) has made a final investment decision (FID) after obtaining legally binding firm transportation agreements for all available capacity.
With the completion of the project, PHP’s capacity will rise by around 550 MMcf/d. In order to boost natural gas supplies from the Waha region to several mainline connections, Katy, Texas, and major US Gulf Coast markets, the project will largely require greater compression on PHP. The project’s planned in-service date is estimated to be November 1, 2023, pending the prompt acquisition of all permissions.
Sital Mody, president of Kinder Morgan, Natural Gas Midstream, said: “We are excited to have achieved FID on this very important expansion.
“The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs.”
Jamie Welch, president and CEO of Kinetik, said: “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.
“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.”
PHP is jointly owned by subsidiaries of Kinder Morgan Inc., Kinetik Holdings Inc and ExxonMobil, with an ownership interest of 26.7 percent, 53.3 percent and 20 percent, respectively.
For more information visit www.kindermorgan.com
