Kinder Morgan’s unit, Kinder Morgan Texas Pipeline, signed a letter of intent with DCP Midstream to participate in the development of the proposed Gulf Coast Express pipeline project.
The project will provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast, which include a number of proposed liquefied natural gas (LNG) export plants.
The project is designed to transport up to 1,700,000 dekatherms per day (Dth/d) of natural gas through approximately 430 miles of 42-inch pipeline from the Waha, Texas area to Agua Dulce, Texas.
The pipeline is expected to be in service in the second half of 2019, Kinder Morgan said in its statement.
The company added that a non-binding open season for firm natural gas transportation is currently in process. Under the LOI, DCP is expected to be a partner and shipper on the proposed pipeline that will be built and operated by Kinder Morgan.
It is anticipated that natural gas supply will be sourced into the project from multiple locations, including existing receipt points along KMI’s KMTP and El Paso Natural Gas pipeline systems in the Permian Basin, a proposed interconnection with the Trans-Pecos Pipeline, and additional interconnections to both intrastate and interstate pipeline systems in the Waha area.
Deliveries of natural gas into the Agua Dulce area will include points into KMTP’s existing Gulf Coast network, KMI-owned intrastate affiliates (KM Tejas and KM Border pipelines), the Valley Crossing pipeline, the NET Mexico header, and multiple other intrastate and interstate natural gas pipelines.