• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Are OPEC+ Members Ignoring 2024 Production Cuts?

Are OPEC+ Members Ignoring 2024 Production Cuts?

Oil prices continued their sideways…

A Ban on LNG Exports Could Boost Carbon Emissions

A Ban on LNG Exports Could Boost Carbon Emissions

President Biden’s recent decision to…

Kinder Morgan Announces $2B Permian Pipeline Project

After it gave up the Trans Mountain pipeline expansion in its native Canada, Kinder Morgan has bet on a certain win in the pipeline-strapped Permian. The company announced it has teamed up with Apache Corp and a Blackstone subsidiary on the construction of a US$2-billion, 2-billion-cu-ft gas pipeline project that will take natural gas from the Waha area to the Gulf Coast and to Mexico.

The Permian Highway Pipeline Project is scheduled to begin operation in late 2020, Kinder Morgan said, and could be expanded to accommodate more producers. It will be 50/50 owned by Kinder Morgan and Apache, while Blackstone’s EagleClaw has an option to buy up to 33 percent in the project and will, like Apache, commit substantial amounts of gas for shipment through the new pipeline.

The fact that Kinder Morgan is building a gas pipeline in an oil-dominated play may seem strange at first, but there are several oil pipeline projects in the making in the Permian, and these oil wells there produce huge amounts of associated gas that also needs to find its way to market, which justifies the company’s decision.

Of course, the bet is also much safer than Trans Mountain: Texas being oil country, and with an extensive pipeline network at that, the chances that the Canadian pipeline builder could face anything similar to the fierce opposition to Trans Mountain in its home country are pretty slim.

By the way, the PHP Project is not the only new gas pipeline project for Kinder Morgan in the Permian. Two months ago, the company started the construction of the Gulf Coast Express Project, which would cost around US$1.75 billion and have the capacity to carry up to 1.98 billion cu ft of gas from the Permian to Agua Dulce in Texas. The pipeline should be operational in late 2019 and has already been fully subscribed for the long term.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News