Kinetik to boost Delaware basin gas processing capacity with $260-million KLII
Kinetik Holdings Inc. has reached final investment decision to proceed with development of Kings Landing II (KLII), a 300 MMcfd natural gas processing plant at its existing Kings Landing complex in New Mexico.
The $260-million project, sanctioned in response to development activity in the Northern Delaware basin, is a 50% increase from the originally contemplated 200 MMcfd capacity expansion, the company said in a release May 19.
The decision to proceed reflects “the accelerated pace of customer development plans, and sustained commercial momentum,” said Jamie Welch, president and chief executive officer, Kinetik. Importantly, he said, “the construction and design of KLII preserves the ability to add a third 200-MMcfd processing plant at the Kings Landing complex.”
Upon completion of KLII in second-half 2028, Kinetik’s system-wide processing capacity is expected to exceed 2.7 bcfd, with more than 700 MMcfd of sour gas processing capacity in northern Eddy and Lea Counties.
With KLII’s increased processing capacity, Kinetik now expects to be at the top end of its 2026 capital expenditures guidance of $450-510 million.