• 2 hours API Reports Seventh Large Crude Draw In Seven Weeks
  • 2 hours Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 3 hours EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 4 hours IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 hours Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 6 hours Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 7 hours Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 9 hours Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 15 hours WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 20 hours Norway Grants Record 75 New Offshore Exploration Leases
  • 1 day China’s Growing Appetite For Renewables
  • 1 day Chevron To Resume Drilling In Kurdistan
  • 1 day India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 1 day India’s Reliance Boosts Export Refinery Capacity By 30%
  • 1 day Nigeria Among Worst Performers In Electricity Supply
  • 2 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 2 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 2 days Saudis To Award Nuclear Power Contracts In December
  • 2 days Shell Approves Its First North Sea Oil Project In Six Years
  • 2 days China Unlikely To Maintain Record Oil Product Exports
  • 2 days Australia Solar Power Additions Hit Record In 2017
  • 2 days Morocco Prepares $4.6B Gas Project Tender
  • 2 days Iranian Oil Tanker Sinks After Second Explosion
  • 5 days Russia To Discuss Possible Exit From OPEC Deal
  • 5 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
  • 5 days Kenya Cuts Share Of Oil Revenues To Local Communities
  • 5 days IEA: $65-70 Oil Could Cause Surge In U.S. Shale Production
  • 5 days Russia’s Lukoil May Sell 20% In Oil Trader Litasco
  • 5 days Falling Chinese Oil Imports Weigh On Prices
  • 5 days Shell Considers Buying Dutch Green Energy Supplier
  • 6 days Wind And Solar Prices Continue To Fall
  • 6 days Residents Flee After Nigeria Gas Company Pipeline Explodes
  • 6 days Venezuela To Pre-Mine Petro For Release In 6-Weeks
  • 6 days Trump Says U.S. “Could Conceivably” Rejoin Paris Climate Accord
  • 6 days Saudis Shortlist New York, London, Hong Kong For Aramco IPO
  • 6 days Rigid EU Rules Makes ICE Move 245 Oil Futures Contracts To U.S.
  • 6 days Norway Reports Record Gas Sales To Europe In 2017
  • 7 days Trump’s Plan Makes 65 Billion BOE Available For Drilling
  • 7 days PetroChina’s Biggest Refinery Doubles Russian Pipeline Oil Intake
  • 7 days NYC Sues Five Oil Majors For Contributing To Climate Change
Shale Restraint Could Lift Oil To $80

Shale Restraint Could Lift Oil To $80

With oil reaching $70 per…

5 Energy Sector Predictions For 2018

5 Energy Sector Predictions For 2018

The energy recovery is well…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

A $1.7 Billion Natural Gas Pipeline To Ease The Permian Glut

Pipeline

Kinder Morgan, DCP Midstream, and a unit of Targa Resources are moving forward with their plan to build a US$1.7-billion gas pipeline in the Permian that could ease some of the takeaway bottlenecks in that basin, and reduce natural gas flaring that has increased greenhouse gas emissions.

Kinder Morgan Texas Pipeline, DCP Midstream, and an affiliate of Targa Resources Corp announced on Thursday a final investment decision to proceed with the Gulf Coast Express Pipeline Project (GCX Project), designed to transport up to 1.92 billion cubic feet per day (Bcf/d) of natural gas. The GCX Project Mainline portion consists of approximately 82 miles of 36-inch pipeline and 365 miles of 42-inch pipeline originating at the Waha Hub near Coyanosa, Texas in the Permian Basin, and terminating near Agua Dulce, Texas.

Kinder Morgan and its partners decided to proceed with the gas pipeline plan after they had executed definitive joint venture agreements and secured sufficient firm transportation agreements with shippers. Around 85 percent of the project capacity is subscribed and committed under long-term, binding transportation agreements, and the partners expect that the remaining capacity will be subscribed by early 2018.

The pipeline is expected to be in service in October 2019, subject to receiving all regulatory approvals. Construction is planned to begin in Q1 2018, Kinder Morgan Natural Gas Midstream President Duane Kokinda said.

Related: Oil Prices Rise After Strong Crude Inventory Draw

Shippers that have committed to the project include, but are not limited to, DCP Midstream, Targa, Apache Corporation, and Pioneer Natural Resources.

DCP Midstream and Targa operate natural gas processing facilities in the Permian and need more takeaway capacity. Apache and Pioneer, on the other hand, are major producers in the Permian and look for ways to monetize growing quantities of associated gas as crude oil production increases.

Rising gas quantities have led to more flaring in the Permian. According to a November 2017 report by the Environmental Defense Fund, “In 2015 alone, enough Permian natural gas was flared to serve all of the Texas household needs in the Permian counties for two and a half years.”

“A Clean Air Task Force report ranked seven Texas Permian counties in the top 10 worst U.S. counties for asthma attacks,” according to the report.

There are some companies that are doing a good job in avoiding gas flaring, but there is a wide performance gap among Permian producers in terms of flaring practices. The rush to pump the higher-value oil “has some Permian drillers simply throwing away the gas. Lack of access to gas pipelines, low gas prices, and outmoded regulations are driving this waste,” the report says.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Ralph on December 22 2017 said:
    Move over Qatar. Let the big dog eat.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News