Producers Midstream launches open season for service on Palo Duro pipeline
Producers Midstream II LLC, Dallas, has launched a binding open season through its Palo Duro (PD) pipeline subsidiary to solicit interest in long-term firm transportation service on a proposed natural gas pipeline project.
The proposed pipeline project would utilize existing infrastructure to provide a new pathway interconnecting the Waha residue markets in the Permian basin with the Mid-Continent residue markets in Anadarko basin, the company said in a release June 30.
The pipeline originates in Nolan County, Tex., and will interconnect with multiple interstate pipelines—including NNG, Transwestern, NGPL, ANR, PEPL, EGT, and Southern Star—offering shippers flexible access to downstream markets, the company continued.
The open season will end on July 14, 2025.
The PD pipeline is a high-pressure natural gas pipeline connecting downstream pipelines while providing takeaway optionality out of the Permian basin.
Producers Midstream is not proposing to construct any new infrastructure as part of the project. Rather, the company would convert to interstate service its existing 16-in. OD intrastate pipeline that extends north-to-south about 275-miles from Nolan County, Tex., to an interconnection in Wheeler County, Tex., with its gathering Header System and include as part of the interstate service leased capacity on the Header System that extends from the Texas Panhandle into western Oklahoma.
Palo Duro Pipeline will provide integrated US Federal Energy Regulatory Commission (FERC)-jurisdictional interstate transportation services utilizing both its own existing pipeline and leased capacity on the Header System.
Producers Midstream is targeting an in-service date for the project in first-quarter 2026. The project and the proposed services are conditioned upon the receipt of FERC authorization on terms acceptable to the company.