Kinder Morgan Announces New Capacity On New Line to be Built in Texas

October 10, 2017

INDUSTRY NEWS (Houston, TX) – Kinder Morgan has increased the capacity on a new natural gas pipeline that it estimates will cost more than $1 billion to build.

The Gulf Coast Express pipeline from the Waha hub in West Texas’s Permian Basin oil field to Agua Dulce near Corpus Christi will now stretch 450 miles, 20 miles longer than originally planned when it was announced in March. The company confirmed that the pipeline’s capacity has increased nearly 13 percent, from 1.7 billion cubic feet of natural gas a day to 1.92 billion cubic feet a day.

The project is expected to cost more than $1 billion, according to company spokeswoman Melissa Ruiz.

Kinder Morgan announced recently that it had signed a letter of intent with Denver-based natural gas pipeline and processing company DCP Midstream and an affiliate of Houston-based natural gas and crude oil pipeline and storage company Targa Resources Corp.

DCP Midstream and Targa Resources would each hold a 25 percent equity interest in the pipeline, the companies said. Kinder Morgan will build and operate the pipeline and own the remaining 50 percent interest. Ruiz declined to say who will be paying for the project’s costs.

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