Permian Highway Pipeline Project

New project provides attractive, broad U.S. Gulf Coast market optionality for Permian Basin production

Kinder Morgan Texas Pipeline (KMTP) and EagleClaw Midstream Ventures (EagleClaw), a portfolio company of Blackstone Energy Partners, announced on September 5, 2018 a final investment decision to proceed with the Permian Highway Pipeline Project (PHP Project) after having executed definitive joint venture agreements and having secured sufficient firm transportation agreements with shippers. Subsequently, the partners secured such agreements for all of the remaining pipeline capacity.

Shippers that have committed to the project include EagleClaw, Apache Corporation (Apache), and XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, amongst others. An affiliate of an anchor shipper exercised its option in January 2019 to acquire a 20 percent equity interest in the project, bringing Kinder Morgan Texas Pipeline’s (KMTP) and EagleClaw Midstream’s ownership interest to 40 percent each. Altus Midstream (a gas gathering, processing and transportation company formed by shipper Apache Corporation) has an option to acquire an equity interest in the project from the initial partners by September 2019. If Altus exercises its option, KMI, EagleClaw and Altus will each hold a 26.67 percent ownership interest in the project.

The approximately $2 billion PHP Project will provide an outlet for increased natural gas production from the Permian Basin to growing market areas along the Texas Gulf Coast. In November 2018, the project partners approved an expansion of the PHP Project capacity by approximately 0.1 Bcf/d, which is currently being marketed. The base project capacity of 2.0 Bcf/d has been fully subscribed. The PHP Project is now designed to transport up to 2.1 Bcf/d of natural gas through approximately 430 miles of 42-inch pipeline from the Waha, Texas area to the U.S. Gulf Coast and Mexico markets. The project is expected to be in service in early 2021, pending regulatory approvals.

Business Development Contacts:
Dave Grisko – (713) 369-9870
Enrique Valencia – (713) 420-5017

Media Contact:
Melissa Ruiz – (713) 369-8060

Public Information Contact:
(833) 626-0339