As reported by S&P Global, Permian Highway Pipeline will move forward with their brownfield expansion.
Kinder Morgan said June 29 that the Permian Highway Pipeline reached a final investment decision to move forward with the proposed expansion project, part of a wave of new takeaway capacity projects set to clear the way for a boom in Permian oil and natural gas production over the next several years.
The project will increase PHP’s capacity by approximately 550 million cubic feet per day (MMcf/d). The project will involve primarily additional compression on PHP to increase natural gas deliveries from the Waha area to multiple mainline connections, Katy, Texas, and various U.S. Gulf Coast markets.
Pending the timely receipt of required approvals, the target in-service date for the project is anticipated to be November 1, 2023.
"This expansion couldn't come at a more critical time, as it will foster future natural gas production growth in West Texas and provide several liquefaction facilities along the Texas Gulf Coast with more affordable, reliable supply," Jamie Welch, CEO of midstream operator Kinetik, said in a June 29 statement.
Meanwhile, Kinder Morgan Natural Gas Midstream President, Sital Mody said that "We are excited to have achieved FID on this very important expansion. The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs."
in 2020, A representative confirmed with EJS that the project was originally reported to create roughly 2,500 jobs in the region.
"The 2,500 construction jobs are individuals hired by Kinder Morgan contractors. These will not be employees of Kinder Morgan. There is no one set way to apply for these jobs. Every contractor is different on how they recruit and post available positions"
Permian Highway Pipeline is owned by subsidiaries of Kinder Morgan, Inc., Kinetik Holdings Inc.and ExxonMobil; with an ownership interest of 26.7%, 53.3% and 20%, respectively.
