Kinder Morgan’s New Permian Pass Pipeline Will Head To East Texas

Kinder Morgan recently announced its latest natural gas pipeline project to be a supporter of the growing liquefied natural gas industry along the Gulf coasts of Texas and Louisiana and will stretch from West to East Texas. Kinder Morgan is still looking into specifics for an exact route for the Permian Pass Pipeline, however plans are for it to begin in the Permian Basin and carry 2 billion cubic feet of natural gas every day towards the Sabine River to LNG export terminals. The Sabine River is growing in its import and export terminal population because of companies like Cheniere Energy, Sempra Energy, Exxon Mobil and Qatar Petroleum.

Steven Kean, CEO of Kinder Morgan, observes “the supply growth out of the Permian Basin and the expected demand growth primarily as a function of demand from the LNG industry is still very robust and should translate itself into a firm, long-term commitment.”

While natural gas produced in the Permian Basin is very plentiful, the pipeline capacity in that area is very limited, causing produced oil to be burned off or flared. Kinder Morgan has plans for three pipelines in order to transport oil from West Texas to users in Mexico and along the Texas Coast.

Along with the Permian Pass Pipeline, Kinder Morgan has plans for a Gulf Coast Express Pipeline, set to begin transporting natural gas in September from the Permian towards Corpus Christi, and a Permian Highway Pipeline, which is still being contested by Texas Hill Country landowners.

Currently, Kinder Morgan has hold of 40 percent of natural gas consumed in the U.S. and owns 70,000 miles of pipelines. The company’s chairman, Richard Kinder, expects the U.S.’s demand for natural gas to increase 30% by 2030 and plans for the company to stay connected to the growing supply and demand. Kinder stated, “Under almost any scenario, natural gas is a winner for years to come…connecting these vast U.S. supplies to growing demand markets will drive new infrastructure and higher utilization of existing assets and Kinder Morgan is very well positioned to take advantage of those opportunities.”