Project Overview

  • Kinder Morgan Texas Pipeline (KMTP) and EagleClaw Midstream Ventures (EagleClaw) have announced a final investment decision to proceed with the Permian Highway Pipeline Project (PHP Project). An affiliate of an anchor shipper exercised its option in January 2019 to acquire a 20 percent equity interest in the project, bringing KMTP and EagleClaw’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, Kinder Morgan, Inc., EagleClaw and Altus will each hold a 26.67 percent ownership interest in the project.

 

  • The approximately $2 billion PHP Project is designed to transport up to 2.1 billion cubic feet per day (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. KMTP will build and operate the pipeline.

 

  • A number of federal and state agencies will be involved with the approval and oversight of the PHP Project, including, but not limited to, the Railroad Commission of Texas, U.S. Fish and Wildlife Service, U.S. Army Corps of Engineers, Texas Historical Commission, Texas Commission on Environmental Quality, Texas General Land Office and Native American tribes as applicable.

Estimated Project Timeline

  • Stakeholder Outreach: Ongoing
  • Civil and Environmental Surveys: September 2018 – June 2019
  • Begin Construction: Fall 2019
  • Proposed In-Service Date: Fourth Quarter of 2020

Project Benefits

  • The PHP Project will provide an outlet for increased natural gas production from the Permian Basin to growing market areas along the U.S. Gulf Coast, including new LNG facilities that will be in service in the next few years.

 

  • The PHP Project will directly generate an estimated 2,500 local construction and 18 full-time jobs. There will be ongoing positions following construction that will continue to accelerate the development and job creation from the booming oil and gas activity throughout Texas.

 

  • When complete, the new facilities constructed as part of the PHP Project will generate approximately $42 million of increased annual revenue to applicable state and local taxing bodies.