Kinder Morgan Texas Pipeline LLC (KMTP), DCP Midstream LP, and an affiliate of Targa Resources Corp. will build the Gulf Coast Express Pipeline Project (GCX) starting this quarter, having executed definitive joint venture agreements and secured sufficient firm transportation agreements with shippers. About 85% of the project’s 1.92-bcfd capacity is subscribed and committed under long-term, binding transportation agreements, and the partners expect the remaining capacity to be subscribed during early 2018.
Shippers that have committed to the project include DCP Midstream, Targa, Apache Corp., and Pioneer Natural Resources Co. KMTP also has committed volumes, backstopped by a long-term purchase agreement that locks in the equivalent transport fee on the pipeline.
GCX’s mainline portion consists of roughly 82 miles of 36-in. OD pipeline and 365 miles of 42-in. pipeline starting at the Waha Hub near Coyanosa, Tex., in the Permian basin and ending near Agua Dulce, Tex. GCX’s Midland Lateral includes about 50 miles of 36-in. pipeline and associated compression, connecting with the GCX mainline.
KMTP expects GCX to be in service in October 2019, pending the receipt of necessary regulatory approvals. Construction is expected to begin this quarter.
KMI will build, operate, and own a 50% interest in GCX, and DCP Midstream and Targa will each hold a 25% equity interest. In addition to its transportation agreements, Apache has an option to buy up to a 15% equity stake in the project from Kinder Morgan. GCX will cost roughly $1.7 billion.
