Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder Morgan Inc., and DCP Midstream LP have signed a letter of intent for DCP to participate in the development of the proposed Gulf Coast Express pipeline project that will connect Permian basin gas production with the Texas Gulf Coast.
The project is designed to transport up to 1.7 million dekatherms/day of gas through 430 miles of 42-in. pipeline from the Waha, Tex., area to Agua Dulce, Tex. The pipeline is expected to be in service in second-half 2019, subject to shipper commitments.
A nonbinding open season for firm gas transportation is currently in process. DCP is expected to be a partner and shipper on the proposed pipeline. KMI will build and operate the line.
DCP operates 1.3 bcfd of processing capacity in the targeted Permian supply area. DCP also operates Sand Hills, an NGL pipeline extending from the Permian to Mont Belvieu, Tex. Sand Hills is currently being expanded to 365,000 b/d from 280,000 b/d.
Gas supply for the Gulf Coast Express project is expected to be sourced from multiple locations, including existing receipt points along KMI’s KMTP and El Paso Natural Gas pipeline systems in the Permian, a proposed interconnection with the Trans-Pecos pipeline, and additional interconnections to both intrastate and interstate pipeline systems in the Waha area.
Deliveries of gas into the Agua Dulce area will include points into KMTP’s existing Gulf Coast network, KMI-owned intrastate affiliates KM Tejas and KM Border pipelines, the Valley Crossing pipeline, the NET Mexico header, and multiple other intrastate and interstate gas pipelines.
Denver-based DCP is managed by its general partner, DCP Midstream GP LP, which is managed by its general partner, DCP Midstream GP LLC, which is wholly owned by DCP Midstream LLC. DCP Midstream LLC is a joint venture of Phillips 66 and Enbridge Inc. DCP Midstream LLC and DCP Midstream Partners LP agreed to merge their businesses in January (OGJ Online, Jan. 6, 2017).