Kinetik Holdings said in its 4Q earnings report it is expanding its natural gas system across the stateline into Lea County, N.M., to begin service in 2024Q1. Jamie Welch, CEO and president of the company with offices in Midland and Houston, said Feb. 27 Kinetik will construct 20 miles of large-diameter, high-pressure pipeline to connect to Kinetik’s Delaware Basin supersystem.
Last year Kinetik started several growth projects that will come online in 2023, including the new Diamond cryogenic gas processing complex (120 million cfd) scheduled for startup next month. Scheduled to start service in 2023Q4 are expansion of Permian Highway pipeline (550 million cfd) operated by Kinder Morgan and the new 40-mile Delaware Link residue gas pipeline (1 Bcfd) that will connect to Permian Highway at Waha. These two projects represent about 55 percent of total estimated 2023 capital expenses of $490 million to $540 million.
