Permian Highway Pipeline LLC (PHP) made a positive final investment decision (FID) to proceed with expansion after securing binding firm transportation agreements for all available capacity, Kinder Morgan Inc. said in a release June 29.
A binding open season for shipper commitments was held earlier this year (OGJ Online, Apr. 26, 2022).
The project, which will increase PHP’s capacity by about 550 MMcfd, will involve primarily additional compression on PHP to increase natural gas deliveries from the Waha area to multiple mainline connections, Katy, Tex., and various US Gulf Coast markets.
Pending the timely receipt of required approvals, the target in-service date is Nov. 1, 2023.
The expansion will not only foster future natural gas production growth in West Texas and provide liquefaction plants along the Texas Gulf Coast with supply, but it will provide access to premium priced markets and transportation flow assurance, which are critical to minimizing flared volumes, said Jamie Welch, president and chief executive officer, Kinetik.
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.