In order to go on with its expansion project, Permian Highway Pipeline, LLC (PHP) 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 U.S. 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.
“We are excited to have achieved FID on this very important expansion,” said Kinder Morgan Natural Gas Midstream President Sital Mody. “The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs.”
“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,” said Jamie Welch, President and CEO of Kinetik. “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%, 53.3% and 20%, respectively.
