Kinder Morgan Pitches Gulf Coast Express Pipeline

May 2017

Kinder Morgan Texas Pipeline LLC announced the start of a non-binding open season for firm natural gas transportation service on its proposed Gulf Coast Express Pipeline Project, which will offer an outlet for rising natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast. The project is designed to transport up to 1.7 MMDth/d of natural gas through approximately 430 miles of 42-inch pipeline from the area near Waha, TX, to Agua Dulce, TX. The pipeline will be operational in the second half of 2019, subject to shipper commitments.

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 Spectra Valley Crossing pipeline, the NET Mexico header, and multiple other intrastate and interstate natural gas pipelines.

“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,” said Kinder Morgan Natural Gas Midstream President Duane Kokinda. “We believe Agua Dulce is a natural destination for incremental Permian production due to the existing and planned pipeline infrastructure in that area.”

The open season starts on March 22, 2017, and will conclude at 5 p.m. Central Time on April 20, 2017.