Kinder Morgan brings Permian Highway back to full capacity

Jan. 23, 2023

Kinder Morgan Inc.’s 2.1-bcfd Permian Highway natural gas pipeline returned to full operating capacity Jan. 23, 2023, following completion of repairs to its Coyanosa, Tex., compressor station.

Christopher E. Smith

Kinder Morgan Inc.’s 2.1-bcfd Permian Highway natural gas pipeline returned to full operating capacity Jan. 23, 2023, following completion of repairs to its Coyanosa, Tex., compressor station. Permian Highway had been operating at 1.2 bcfd and ramped up to 1.8 bcfd on Jan. 20 as repairs wrapped up.

Constraints on Permian Highway and other pipelines out of West Texas have led to Waha basis spot pricing occasionally turning negative since fourth-quarter 2022 (OGJ Online, Oct. 26, 2022).

Kinder Morgan plans to place a 650-MMcfd Permian Highway expansion in service by Nov. 1, 2023. The project will involve compression expansions to increase gas deliveries from Waha hub in the Permian basin to multiple mainline connections, the Katy, Tex., hub, and various US Gulf Coast destinations (OGJ Online, July 4, 2022). The company noted in its fourth-quarter 2022 earnings report that land acquisition and procurement of materials and contractors for the expansion was progressing as anticipated.

Permian Highway is jointly owned by subsidiaries of Kinder Morgan Inc., Kinetik Holdings Inc., and ExxonMobil Corp., with interests of 26.7%, 53.3%, and 20%, respectively.

About the Author

Christopher E. Smith | Editor in Chief

Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.