July 22, 2019 [Kallanish Energy] – Kinder Morgan intends to run its newest natural gas pipeline to east Texas to support the growing liquefied natural gas industry along the Texas-Louisiana border, Kallanish Energy reports.
News about the eastern terminus of the planned Permian Pass Pipeline came from CEO Steven Kean during an earnings call on Wednesday with analysts and the media.
The exact route of the pipeline is still being studied, but it will begin the Permian Basin of West Texas and New Mexico. It will extend east across Texas to near the Sabine River, where three LNG export terminals have been and are being developed by Cheniere, Sempra Energy and ExxonMobil/Qatar Petroleum.
The new pipeline is designed to move 2 billion cubic feet of natural gas per day.
“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,” Kean said, the Houston Chronicle newspaper reported.
The Permian Pass project would be Kinder Morgan’s third to move natural gas out of the Permian Basin to the Gulf Coast and to Mexico.
It is involved in the Gulf Coast Express Pipeline that is scheduled to move 2 Bcf/d from the Permian to the Agua Dulce Hub near Corpus Christi, Texas, by late September 2019.
The company’s Permian Highway Pipeline, designed to move natural gas to the Katy Hub near Houston by October 2020, currently is tied up in a court fight with landowners in the Texas Hill Country.
Kean said Kinder Morgan’s projections show a fourth natural gas pipeline might be needed. “From our standpoint, the proof will be in the sign ups,” Kean said in the Chronicle.