Leaders of Kinder Morgan Texas Pipeline LLC (KMTP) are currently holding discussions among themselves to construct a natural gas pipeline to provide a highly accessible outlet for production from the Permian Basin region to the markets along the state’s Gulf Coast.
Called the Gulf Coast Express Pipeline, the project is specifically designed to transport gas through around 430 miles of pipeline from the Waha area to Agua Dulce. The gas would be sourced from multiple locations, including existing receipt points in the Permian Basin, with additional interconnections to interstate and intrastate pipeline systems.
Commenting on the project, KMTP gas midstream President Duane Kokinda said:
“The Gulf Coast Express Pipeline Project connects growing natural gas supplies in the Permian Basin with expanding markets for natural gas on the Texas Gulf Coast, including export markets via liquefied natural gas and deliveries into Mexico, while providing shippers flow assurance and margin enhancement through a wide variety of interconnecting pipelines.
“We believe Agua Dulce is a natural destination for incremental Permian production due to the existing and planned pipeline infrastructure in that area.”
The pipeline is expected to be officially functioning by the second half of 2019, though the schedule is said to be subject to shipper commitments.