Houston-based Kinder Morgan recently increased capacity of its Permian Highway natural gas pipeline by 550 million cfd. Kimberly Dang, CEO, said during an investor call last week KMI brought the expansion into service Dec. 1. The expansion uses compression to increase capacity. Total capacity is now 2.65 Bcfd for the pipeline from the Waha hub in west Texas to Katy.
Dang told S&P Global she does not see an immediate need for more greenfield takeaway projects from Permian. She said, “You’ve added over 1Bcfd of capacity in the fourth quarter, and then I think Matterhorn is coming on in the back half of next year. So you’ve got capacity coming into the market now. That’s why we believe it’s the back half of the decade before you see the need for brand-new greenfield pipe (in Permian).”
Gas production hit new highs in Permian in November, reaching 19.8 Bcfd Nov. 8.