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.”


Kinder Morgan Announces Pipeline Expansion in North Dakota

Kinder Morgan announced that the company is evaluating how much more capacity it will need to expand the Hiland Crude system based on the level of interest and the volume commitments it secures.

It's the third announcement of a major pipeline project in the state over the past month for carrying more Bakken oil out of North Dakota.

Currently, Hiland Crude system carries 88,000 barrels of oil each day from McKenzie County to Wyoming. From a hub there, Tallgrass Express transports up to 375,000 barrels per day to three refineries and a terminal in Oklahoma with its Pony Express Pipeline.

Tallgrass may also consider expanding the Pony Express line, Kinder Morgan spokeswoman Katherine Hill told the Bismarck Tribune.


Kinder Morgan Announces Successful Open Season on Roanoke Expansion Projects

Kinder Morgan announced a successful open season on its Roanoke Expansion project for the Plantation Pipe Line System, which received long-term committed volumes of 20,000 bpd.

“We are pleased with the successful Plantation Pipe Line open season and the opportunity to invest expansion capital to serve the Roanoke area’s needs with reliable transportation and storage services in projects that meet our investment criteria,” said Kinder Morgan’s president of Products pipelines.

Plantation Pipe Line will submit the Petition for Declaratory Order to the FERC for approval of commercial terms for the project. Pending all regulatory approvals, the project is expected to be in full service by April 1, 2020.

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