Kinder Morgan takes another step to expand Permian gas pipes

Kinetik Holdings

17/05/2022 17:33

May 17 (Reuters) - Kinder Morgan Inc  KMI.N  added another
project to the list of proposed pipes seeking to move growing
amounts of natural gas from the Permian shale in Texas with its
announced open season for an expansion of the Gulf Coast Express
pipe in Texas.
    If the solicitation generates enough interest, Kinder said
in a release on Monday that Gulf Coast Express will increase the
pipe's capacity by nearly 0.570 billion cubic feet per day
(bcfd).  urn:newsml:reuters.com:*:nBwkyyB6a
    The open season for the Gulf Coast Express expansion follows
another open season by Kinder in April to expand the Permian
Highway gas pipe by nearly 0.650 bcfd.  urn:newsml:reuters.com:*:nNRAkjycg0
    One billion cubic feet is enough gas for about 5 million
U.S. homes.
    The Permian in West Texas and eastern New Mexico is the
biggest shale oil producing basin in the United States.
    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 liquefied natural gas export
plants on the Gulf Coast, several companies are looking to add
new gas pipes in the region, including units of Energy Transfer
LP  ET.N  and MPLX LP  MPLX.N .  urn:newsml:reuters.com:*:nL2N2WP2VD  urn:newsml:reuters.com:*:nL1N2US1JD
    Kinder said the Gulf Coast Express project will involve
primarily compression expansions to increase gas deliveries from
the Permian to South Texas markets.
    Pending customer commitments, Kinder said the target
in-service date for the Gulf Coast Express project is Dec. 1,
2023.
    The in-service date for the Permian Highway project is Oct.
1, 2023.
    Gulf Coast Express is operated by Kinder's Texas Pipeline
subsidiary and is jointly owned by units of Kinder (34%), DCP
Midstream LP  DCP.N  (25%), ArcLight Capital Partners LLC (25%)
and Kinetik Holdings Inc  KNTK.O  (16%).

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Permian Highway Pipeline Announces Binding Open Season for
Expansion Project     urn:newsml:reuters.com:*:nNRAkjycg0
GRAPHIC-U.S. natural gas production growth wanes as need arises 
   urn:newsml:reuters.com:*:nL2N2WP2VD
Energy Transfer joins in rush to build Permian gas pipeline   
 urn:newsml:reuters.com:*:nL1N2US1JD
Gulf Coast Express Pipeline Announces Open Season for Expansion
Project     urn:newsml:reuters.com:*:nBwkyyB6a
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Scott DiSavino
Editing by Marguerita Choy)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))