West Texas natural gas producers this Fall found some measure of relief from their Permian pains when Kinder Morgan’s Gulf Coast Express (GCX) Pipeline in September began service nearly a month ahead of schedule. There’s no question, congestion and heartburn over the last couple of years have triggered a slew of other lingering ailments in this part of the patch. Lost producer revenues. Battered gas prices. Well shutdowns. Record flaring. And a hyper-urgency to build the pipelines and midstream infrastructure in the world’s most productive basin to meet growing global natural gas demand.
WhiteWater Midstream is an independent, Austin based, infrastructure company. WhiteWater currently manages $3 billion in gas transmission assets originating in the Permian Basin.
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals. Kinder Morgan owns an interest in or operates approximately 85,000 miles of pipelines and 152 terminals.
Kinder Morgan’s GCX is the first completed of seven natural gas pipelines proposed to service West Texas and southeastern, N.M. Only two others have reached the magical FID stage. Extending 450 miles from the Waha area to Agua Dulce near the Texas Gulf Coast, GCX flows more than 2 BCFD. Initial deliveries in August created a near immediate uptick in gas prices. KM’s hotly anticipated Permian Highway Pipeline, which is expected to begin service late next year, will transport up to 2.1 BCFD of additional gas along 450 miles from Waha to the Gulf Coast and Mexico.
The third Permian pipeline project comes from Austin-based Whitewater Midstream and partners, which this week wrapped up three public meetings in Odessa, Uvalde and Alice, Texas, to move forward with the Whistler Pipeline. The 450-mile Whistler is planned for completion in 2021 and will stretch from the Waha Hub to the Agua Dulce with an initial capacity of 2 BCFD. Whitewater announced in November it also will double the capacity on its Agua Blanca natural gas system in the Delaware to 8.4 MMCFD. The Agua Blanca services portions of Culberson, Loving, Pecos, Reeves, Ward and Winkler counties with multiple deliveries to Waha.
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