Kinder Morgan Increases Permian Highway Pipeline Capacity by 550 MMcf/d

(P&GJ) — Pipeline operator Kinder Morgan has successfully augmented the capacity of its Permian Highway natural gas pipeline by an additional 550 million cubic feet per day (MMcf/d), Permian Basin Oil and Gas Magazine reported.

Kimberly Dang, the CEO, disclosed this development in a recent investor call, revealing that the expansion was brought into operation on Dec. 1, according to Permian Basin Oil and Gas. Utilizing compression techniques, the enhanced capacity now stands at 2.65 billion cubic feet per day for the pipeline, extending from the Waha hub in west Texas to Katy.

During an interview with S&P Global, Dang expressed her view that there is currently no urgent requirement for new greenfield takeaway projects in the Permian region. She highlighted the significant addition of over 1 billion cubic feet per day (Bcf/d) in the fourth quarter and anticipated the Matterhorn project to come online in the latter half of the next year.

 With this influx of capacity into the market, Dang emphasized the likelihood of a demand for new greenfield pipelines in the Permian not emerging until the latter half of the decade.

In a notable milestone, gas production in the Permian region achieved record highs in November, peaking at 19.8 Bcf/d on Nov. 8.

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