ExxonMobil joins EagleClaw, Kinder Morgan on Permian Pipeline

Kinder Morgan Texas Pipeline, EagleClaw Midstream Ventures, and Apache announced ExxonMobil signed a letter of intent to support the proposed Permian Highway Pipeline Project.

Under the agreement, ExxonMobil subsidiary XTO Energy may contract for up to 450,000 Dth/d of capacity on the pipeline.

The $2 billion project will provide an outlet for increased natural gas production from the Permian Basin to growing market areas along the Texas Gulf Coast and is designed to transport up to 2 Bcf/d of natural gas through 430 miles of 42-inch pipeline from the Waha to Katy, Texas, areas.

The PHP Project is expected to be in service in late 2020.

KMTP and EagleClaw will be the initial partners, each with a 50% ownership interest. Apache and EagleClaw will be significant shippers on the proposed pipeline, with each entity planning to commit up to 500,000 Dth/d to the project. Apache will also have the option to acquire equity from the initial partners. KMTP will build and operate the pipeline.

KMTP and EagleClaw are currently holding an open season for capacity on the project.

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