Midland Basin Lateral Added to the Project
Scope; Significant Volumes to be Committed to the Project
Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder
Morgan, Inc. (NYSE: KMI), DCP Midstream, LP (NYSE: DCP) (DCP
Midstream) and an affiliate of Targa Resources Corp. (NYSE: TRGP)
(Targa) today announced they have signed a letter of intent with
respect to the joint development of the proposed Gulf Coast Express
Pipeline Project (GCX Project), which would provide an outlet for
increased natural gas production from the Permian Basin to growing
markets along the Texas Gulf Coast. The participation of the three
parties involved with the GCX Project is subject to negotiation and
execution of definitive agreements among KMTP, DCP Midstream and
Targa. As part of the definitive agreements, Targa and DCP
Midstream would commit significant volumes to the proposed project,
including certain volumes provided by Pioneer Natural Resources
Company (NYSE: PXD) (Pioneer), a joint owner in Targa’s WestTX
Permian Basin system and one of the largest producers in the
Permian Basin.
The capacity of the GCX Project is expected to be approximately
1.92 billion cubic feet per day (Bcf/d) and would include a lateral
into the Midland Basin, consisting of approximately 50 miles of
36-inch pipeline and associated compression to serve gas processing
facilities owned by Targa, as well as facilities owned jointly by
Targa and Pioneer. The expected in-service date of the pipeline
continues to be scheduled for the second half of 2019, pending the
timely completion of definitive agreements with shippers and a
final investment decision by the three parties. Per the terms of
the letter of intent, KMI would build, operate and own a 50 percent
interest in the GCX Project, and DCP Midstream and Targa would each
hold a 25 percent equity interest in the project.
“We are thrilled to have Targa join DCP Midstream and Kinder
Morgan in developing the project and to add both Targa and Pioneer
as major customers on the proposed system,” said Kinder Morgan
Natural Gas Midstream President Duane Kokinda. “With DCP Midstream
and Targa, we now have two of the premier gathering and processing
supply aggregators in the Permian Basin on board, as well as one of
the Basin’s largest producers with Pioneer. The commitments of
these parties confirm our premise that combining supply source
optionality in the Basin with unparalleled market access on the
Agua Dulce end provides an attractive takeaway solution for the
parties developing natural resources in the Permian Basin.”
“We are excited to have the opportunity to expand our portfolio
of integrated assets and customer offerings in the Permian which
would complement our Sand Hills expansions,” said Wouter van
Kempen, chairman, president and CEO of DCP Midstream. “This is a
strong collaboration of players that draws upon our combined
capabilities to provide a competitive and capital efficient
solution to the industry.”
“We are excited to be joining KMI and DCP Midstream in the
development of the GCX Project. Given our significant Permian Basin
footprint, continuing to provide our customers with flexibility and
access to premier markets is always our focus, and we believe that
the GCX Project would further enhance those capabilities,” said Joe
Bob Perkins, CEO of Targa.
It is anticipated that natural gas supply would 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 would include points into KMTP’s
existing Gulf Coast network, KMI-owned intrastate affiliates (KM
Tejas and KM Border pipelines), the Valley Crossing pipeline, the
NET Mexico header, and multiple other intrastate and interstate
natural gas pipelines.
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. It owns an interest in
or operates approximately 84,000 miles of pipelines and
155 terminals. KMI’s pipelines transport natural gas, refined
petroleum products, crude oil, condensate, CO2 and other products,
and its terminals transload and store petroleum products, ethanol
and chemicals, and handle products such as steel, coal and
petroleum coke. It is also a leading producer of CO2 that we and
others use for enhanced oil recovery projects primarily in the
Permian basin. For more information please visit
www.kindermorgan.com.
DCP Midstream, LP (NYSE: DCP) is a midstream master limited
partnership, with a diversified portfolio of assets, engaged in the
business of gathering, compressing, treating, processing,
transporting, storing and selling natural gas; producing,
fractionating, transporting, storing and selling NGLs and
recovering and selling condensate. DCP owns and operates more than
60 plants and 64,000 miles of natural gas and natural gas liquids
pipelines, with operations in 17 states across major producing
regions and leads the midstream segment as the largest natural gas
liquids producer, the largest natural gas processor and one of the
largest marketers in the U.S. Denver, Colorado based DCP is managed
by its general partner, DCP Midstream GP, LP, which is managed by
its general partner, DCP Midstream GP, LLC, which is 100% owned by
DCP Midstream, LLC. DCP Midstream, LLC is a joint venture between
Phillips 66 and Enbridge. For more information, please visit
www.dcpmidstream.com.
Targa Resources Corp. (NYSE: TRGP) is a leading provider of
midstream services and is one of the largest independent midstream
energy companies in North America. Targa owns, operates, acquires,
and develops a diversified portfolio of complementary midstream
energy assets. The Company is primarily engaged in the business of
gathering, compressing, treating, processing and selling natural
gas; storing, fractionating, treating, transporting, and selling
NGLs and NGL products, including services to LPG exporters;
gathering, storing, and terminaling crude oil; storing,
terminaling, and selling refined petroleum products. For more
information, please visit www.targaresources.com.
Important Information Relating to
Kinder Morgan’s Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Section 21E of the Securities and Exchange Act of 1934.
Generally the words “expects,” “believes,” anticipates,” “plans,”
“will,” “shall,” “estimates,” and similar expressions identify
forward-looking statements, which are generally not historical in
nature. Forward-looking statements are subject to risks and
uncertainties and are based on the beliefs and assumptions of
management, based on information currently available to them.
Although Kinder Morgan believes that these forward-looking
statements are based on reasonable assumptions, it can give no
assurance that any such forward-looking statements will
materialize. Important factors that could cause actual results to
differ materially from those expressed in or implied from these
forward-looking statements include the risks and uncertainties
described in Kinder Morgan’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year-ended December 31, 2016 (under the headings “Risk Factors”
and “Information Regarding Forward-Looking Statements” and
elsewhere) and its subsequent reports, which are available through
the SEC’s EDGAR system at www.sec.gov and on our website at
ir.kindermorgan.com. Forward-looking statements speak only as of
the date they were made, and except to the extent required by law,
Kinder Morgan undertakes no obligation to update any
forward-looking statement because of new information, future events
or other factors. Because of these risks and uncertainties, readers
should not place undue reliance on these forward-looking
statements.
Important Information Relating to DCP
Midstream’s Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Section 21E of the Securities and Exchange Act of 1934.
Generally the words “expects,” “believes,” anticipates,” “plans,”
“will,” “shall,” “estimates,” and similar expressions identify
forward-looking statements, which are generally not historical in
nature. Forward-looking statements are subject to risks and
uncertainties and are based on the beliefs and assumptions of
management, based on information currently available to them.
Although DCP Midstream believes that these forward-looking
statements are based on reasonable assumptions, it can give no
assurance that any such forward-looking statements will
materialize. Important factors that could cause actual results to
differ materially from those expressed in or implied from these
forward-looking statements include the risks and uncertainties
described in DCP Midstream’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year-ended December 31, 2016 (under the headings “Risk Factors”
and “Information Regarding Forward-Looking Statements” and
elsewhere) and its subsequent reports, which are available through
the SEC’s EDGAR system at www.sec.gov and on our website under the
Investors tab at www.dcpmidstream.com. Forward-looking statements
speak only as of the date they were made, and except to the extent
required by law, DCP Midstream undertakes no obligation to update
any forward-looking statement because of new information, future
events or other factors. Because of these risks and uncertainties,
readers should not place undue reliance on these forward-looking
statements.
Important Information Relating to
Targa’s Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that Targa expects, believes or
anticipates will or may occur in the future are forward-looking
statements. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
uncertainties, factors and risks, many of which are outside Targa's
control, which could cause results to differ materially from those
expected by management of Targa. Such risks and uncertainties
include, but are not limited to, the timing and extent of changes
in commodity prices, interest rates and demand for services, the
level and success of crude oil and natural gas drilling around
assets, the timing and success of business development efforts,
ability to access the capital markets, the amount of collateral
required to be posted from time to time in transactions, success in
risk management activities, the credit risk of customers, changes
in laws and regulations, weather and other uncertainties. These and
other applicable uncertainties, factors and risks are described
more fully in Targa's Annual Report on Form 10-K for the year ended
December 31, 2016 and other reports filed with the Securities and
Exchange Commission. Targa undertakes no obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171004006320/en/
KMI Media RelationsMelissa Ruiz, (713)
369-8060melissa_ruiz@kindermorgan.comorKMI Investor
Relations(713)
369-9490km_ir@kindermorgan.comwww.kindermorgan.comorDCP Media
RelationsRoz Elliott, (303)
605-1707www.dcpmidstream.comorDCP Investor RelationsIrene
Lofland, (303) 605-1822www.dcpmidstream.comorTarga Investor and
Media RelationsSanjay Lad, (713)
584-1133investorrelations@targaresources.comwww.targaresources.com
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