ExxonMobil Corp. plans to support the proposed Permian Highway Pipeline (PHP) Project, signing a letter of intent for subsidiary XTO Energy to contract for as much as 450,000 dekatherms/day of capacity on the pipeline.
The $2-billion PHP Project will provide an outlet for increased gas production from the Permian basin to areas along the Texas Gulf Coast and is designed to transport as much as 2 bcfd of gas through 430 miles of 42-in. pipe from the Waha to Katy, Tex., areas, with connections to the US Gulf Coast and Mexico. The PHP Project is expected to be in service in late 2020 (OGJ Online, June 26, 2018).
With 50-50 ownership of the project, Kinder Morgan Texas Pipeline LLC (KMTP) and EagleClaw Midstream Ventures LLC, a portfolio company of Blackstone Energy Partners, will be initial partners. Apache Corp. and EagleClaw will be weighty shippers, each planning to commit as much as 500,000 dekatherms/day. Apache will have the option to acquire equity from the initial partners. KMTP will build and operate the pipeline.
ExxonMobil’s support is expected to accelerate the path to a final investment decision, said Sital Mody, president of Kinder Morgan Natural Gas Midstream.
KMTP and EagleClaw will hold an open season beginning Aug. 10 for capacity on the PHP Project.