Kinder Morgan Texas Pipeline LLC, a subsidiary of Kinder Morgan, Inc., and DCP Midstream, LP have signed a letter of intent for DCP to participate in the development of the proposed Gulf Coast Express Pipeline Project, which will offer an outlet for increased natural gas production from the Permian Basin to emerging markets along the Texas Gulf Coast. The project is designed to deliver up to 1,700,000 dekatherms per day 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 operational in the second half of 2019, subject to shipper commitments.
A non-binding open season for firm natural gas transportation is presently in process and it is anticipated that DCP will be a partner and shipper on the proposed pipeline with KMI responsible for its construction and operation.
“We are excited to be partnering with one of the larger natural gas marketers in the Permian Basin area, with DCP Midstream currently marketing approximately 600 million cubic feet per day of natural gas in that region,” said Kinder Morgan Natural Gas Midstream President Duane Kokinda. “We believe DCP’s strong Permian position, when combined with the downstream market connectivity of Kinder Morgan’s Texas Intrastate network, creates a valuable project for both producers and markets.”
Natural gas is expected to 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, the KM Tejas and KM Border pipelines, the Valley Crossing pipeline, the NET Mexico header, and multiple other intrastate and interstate natural gas pipelines.