Kinder Morgan Subsidiary and EagleClaw to Proceed With Permian Highway Pipeline Project
September 05 2018 - 5:53PM
Dow Jones News
By Stephen Nakrosis
Kinder Morgan Texas Pipeline LLC and EagleClaw Midstream
Ventures, LLC said Wednesday the companies have made a final
investment decision to proceed with the Permian Highway Pipeline
Project, which is intended to provide an outlet for increased
natural gas production from the Permian Basin to growing market
areas along the Texas Gulf Coast.
The companies said almost all capacity available on the system
is subscribed and committed under long-term, binding transportation
agreements, with the remainder expected to be awarded shortly.
Shippers that have committed to the project include EagleClaw,
Apache Corporation and XTO Energy Inc., a subsidiary of Exxon Mobil
Corp.
Kinder Morgan Texas Pipeline is a subsidiary of Kinder Morgan,
Inc. (KMI). EagleClaw Midstream Ventures is a portfolio company of
Blackstone Energy Partners.
The project is expected to cost about $2 billion, and is
designed to transport up to 2 billion cubic feet per day of natural
gas about 430 miles. The pipeline should be in service by late
2020, the companies said.
Sital Mody, President of Kinder Morgan Natural Gas Midstream,
said, "With a route identified and the project nearly fully
subscribed, we expect to begin stakeholder outreach, environmental
surveys and right-of-way activities in the coming months."
KMTP and EagleClaw will be the initial partners, with each
holding a 50% ownership interest in the project, which KMTP will
build and operate.
Apache Corp. has the option to acquire equity from the initial
partners and said it would assign that option to Altus Midstream.
Last month, Apache and Kayne Anderson Acquisition Corp. (KAAC)
announced an agreement to create the Altus Midstream Company, which
will own options for equity participation in five planned pipelines
from the Permian Basin to various points along the Texas Gulf
Coast.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
September 05, 2018 17:38 ET (21:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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