Kinder Morgan, DCP Midstream, Targa Resources announce partnerships on Gulf Coast Express Pipeline
Kinder Morgan Texas PIpeline LLC (KMTP), DCP Midstream, and a Targa Resources Corp. affiliate will partner on development of the Gulf Coast Express Pipeline (GCX) Project between the Permian Basin and the Texas Gulf Coast, the companies announced on Wednesday.
Spanning 50 miles, the 36-inch pipeline will shuttle approximately 1.92 billion cubic feet of natural gas from the Permian Basin to energy markets along the Texas coast. The pipeline is expected to be in service in 2019.
“We are thrilled to have Targa join DCP Midstream and Kinder Morgan in developing the project and to add both Targa and Pioneer as major customers on the proposed system,” Duane Kokinda, the president of Kinder Morgan Natural Gas Midstream, said. “With DCP Midstream and Targa, we now have two of the premier gathering and processing supply aggregators in the Permian Basin on board, as well as one of the Basin’s largest producers with Pioneer. The commitments of these parties confirm our premise that combining supply source optionality in the Basin with unparalleled market access on the Agua Dulce end provides an attractive takeaway solution for the parties developing natural resources in the Permian Basin.”
Representatives from KMTP, a subsidiary of Kinder Morgan, Inc., DCP Midstream, and Targa Resources Corp. signed a letter of intent to partner on the GCX project this week. Final agreement will be subject to negotiation and execution of definitive agreements among the three parties.
“We are excited to have the opportunity to expand our portfolio of integrated assets and customer offerings in the Permian which would complement our Sand Hills expansions,” Wouter van Kempen, the chairman, president and CEO of DCP Midstream, said. “This is a strong collaboration of players that draws upon our combined capabilities to provide a competitive and capital efficient solution to the industry.”
The GCX Project will be supplied by outlets along KMPT and El Paso Natural Gas Pipeline systems, proposed connections with the Trans-Pecos Pipeline, and additional intrastate and interstate pipeline interconnections in the Waha area of Texas.
“We are excited to be joining KMI and DCP Midstream in the development of the GCX Project,” Joe Bob Perkins, the CEO of Targa, said. “Given our significant Permian Basin footprint, continuing to provide our customers with flexibility and access to premier markets is always our focus, and we believe that the GCX Project would further enhance those capabilities.”
