Kinetik Boosts Permian Capacity with Kings Landing II FID

Kinetik reached FID on the 300 million cubic feet per day Kings Landing II gas processing plant in New Mexico, expanding its Northern Delaware Basin processing footprint as producer activity continues to grow.

(P&GJ) — Kinetik Holdings has reached final investment decision on the Kings Landing II natural gas processing plant in New Mexico, expanding its processing footprint in the Northern Delaware Basin as producer activity in the region continues to grow.

The Kings Landing II project will add 300 million cubic feet per day of natural gas processing capacity at the company’s existing Kings Landing complex. The expansion is larger than Kinetik’s originally planned 200 million cubic feet per day addition.

The company said the increased project scale reflects continued development activity across its acreage position and rising customer demand in the basin.

Jamie Welch, president and CEO of Kinetik, said the expansion supports ongoing growth in the Northern Delaware Basin while preserving the ability to potentially add a third 200 million cubic feet per day processing plant at the complex in the future.

The project is expected to enter service during the second half of 2028. Once completed, Kinetik said its total systemwide processing capacity will exceed 2.7 billion cubic feet per day, including more than 700 million cubic feet per day of sour gas processing capacity across northern Eddy and Lea counties in New Mexico.

Kinetik estimates the project will cost approximately $260 million and said the expansion will place the company near the upper end of its 2026 capital expenditure guidance range.