Exxon joins Kinder-Morgan in gas pipeline from Permian Basin to connect with regional pipelines Southwest of Houston

Fuel Fix:
Exxon Mobil is signing on as a major customer on Kinder Morgan's planned, $2 billion Permian Highway Pipeline to carry natural gas from West Texas to the Houston region.

Irving-based Exxon Mobil is looking for more outlets to transport its natural gas from its rapidly increasing Permian Basin production. While crude oil is the main focus of production, there's a lot of still-valuable associated gas that comes out of the Permian wells too.

Houston-based pipeline giant Kinder Morgan proposed the Permian Highway Pipeline project in June in a partnership with Midland-based EagleClaw Midstream. EagleClaw is financially backed by the New York private equity giant Blackstone Group.

Kinder Morgan and EagleClaw also are partnered with Houston-based oil and gas producer Apache Corp., which which has the option to buy a one-third stake in the pipeline. Apache announced earlier this week that it's forming its own Permian-focused pipeline company called Altus Midstream, which would take over the option to buy the stake.

The proposed pipeline would trek from the southern Permian, starting north of Fort Stockton, through much of Texas' Hill Country and terminate southwest of Houston. From there it would connect to existing pipeline networks to deliver gas to the Houston area, as well as Freeport, Corpus Christi and Mexico, which is increasingly importing more American gas for its power generation.
...
 Completion date is scheduled for sometime in 2020.   The pipeline would also facilitate increased production of oil in the Permian Basin which has been hampered by the lack of infrastructure to deal with teh gas produced in the same wells.

Apache Corp. has a major stake in projects in the western area of the Permian.

The pipeline would facilitate substantially increased production of the ExxonMobil operations in the region.

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