DCP Midstream LP (NYSE: DCP) has joined with a subsidiary of Kinder Morgan Inc. (NYSE: KMI) to develop the Gulf Coast Express Pipeline Project, a conduit for Permian Basin natural gas to the Texas Gulf Coast.
The planned 430-mile, 42-in. pipe, with capacity of up to 1,700,000 dekatherms per day (Dth/d) will stretch from Waha, Texas, to Agua Dulce, Texas, and is expected to be in service in second-half 2019.
“This opportunity presents a welcome competitive alternative that adds diversity to the market and is complementary to our recently announced Sand Hills expansion,” said Wouter van Kempen, chairman, president and CEO of DCP, in a statement. “DCP has a premier portfolio of integrated assets in the Permian offering a full range of services and solutions to our customers.”
“We are excited to be partnering with one of the larger natural gas marketers in the Permian Basin area, with DCP Midstream currently marketing approximately 600 million cubic feet per day of natural gas in that region,” said Duane Kokinda, president of Kinder Morgan Natural Gas Midstream. “We believe DCP’s strong Permian position, when combined with the downstream market connectivity of Kinder Morgan’s Texas Intrastate network, creates a valuable project for both producers and markets.”
A non-binding open season for firm natural gas transportation for the pipeline, which will be build and operated by Kinder Morgan, is currently in process.
Natural is likely to be sourced from multiple locations, including existing points along Kinder Morgan’s KMTP and El Paso Natural Gas pipeline systems in the Permian, 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 will include points into KMTP’s existing Gulf Coast network.
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