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    ExxonMobil Adds Support to Permian Gas Pipe Project

Summary

Pipeline expected in service by 2020.

by: Dale Lunan

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Natural Gas News, Americas, Corporate, Shale Gas , Infrastructure, Pipelines, News By Country, United States

ExxonMobil Adds Support to Permian Gas Pipe Project

Kinder Morgan said August 10 US super-major ExxonMobil has agreed to support the proposed Permian Highway Pipeline (PHP) project, a 430-mile intra-state conduit designed to transport up to 2bn ft3/day of associated gas from the Permian Basin in Texas to connections that would move it to markets in the US Gulf Coast region and Mexico.

Under a letter of intent signed by ExxonMobil, its unconventional oil and gas subsidiary, XTO Energy, may contract for up to 450mn ft3/day of capacity on the $2bn pipeline project.

“We are committed to supporting development of the infrastructure needed for our planned production growth in the Permian Basin,” XTO Energy president Sara Ortwein said. “The Permian Highway Pipeline will provide additional capacity for reliable transportation of natural gas to the US Gulf Coast.”

PHP is expected to be in service in late 2020, pending the executive of definitive agreements and the receipt of construction permits.

Kinder Morgan subsidiary Kinder Morgan Texas Pipelines (KMTP) and EagleClaw Midstream Ventures will be the initial partners in PHP, each with a 50% interest in the project. Apache and EagleClaw each plan to commit to up to 500,000mn ft3/day of capacity, while Apache has an option to acquire equity from the initial partners.

KMTP will build and operate the pipeline.