Kinder Morgan Adds Exxon Mobil as Major Customer for Permian Highway Pipeline

Kinder Morgan has added on Exxon Mobil as a major customer for its planned $2 billion Permian Highway Pipeline that will carry natural gas from West Texas to the Houston region.

Exxon is looking for more outlets to transport its natural gas from the rapidly increasing Permian Basin production. A lot of valuable associated gas comes out of the Permian despite crude oil being the main focus of production.

Kinder Morgan proposed the Permian Highway Pipeline project in June as they partnered with Midland-based EagleClaw Midstream. Eagle claw is financially backed by the private equity giant Blackstone Group out of New York.

The goal is to have the pipeline open by the end of 2020. Route details are still being finalized, but the main uses for the project include supplying gas for electricity generation in Texas and Mexico as well as supplying new liquefied natural gas export complexes currently under construction in Freeport and Corpus Christi.

Source:
Houston Chronicle