New Natural Gas Pipeline Comes Into Service in the Permian

Kinder Morgan announced its 448-mile Gulf Coast Express Pipeline will begin full commercial service ahead of schedule today, September 25, 2019. The Houston Chronicle reports the natural gas transmission is fully booked under long-term contracts and will move 2 billion cubic feet of natural gas per day from the Waha hub in West Texas to the Agua Dulce hub in South Texas. From there, product can be exported on other pipelines to Mexico or LNG export terminals along the Gulf Coast.

“With natural gas supplies projected to rise over the next 20 years from supply basins such as the Permian, our strong network of pipelines provides the ability to connect this supply to the growing markets along the Gulf Coast,” Kinder Morgan CEO Steve Kean said in a statement.

This pipeline, and others like it, are critical additions to our nation’s energy infrastructure. As experts have previously argued, expanding the Permian’s pipeline network to carry the record amount of natural gas being produced will decrease the practice of flaring and instead transform the excess product into a significant asset.

In addition to bolstering our energy security and ensuring grid resiliency, the project provided significant economic benefits. Construction involved 3,000 contractors who logged in more than six million hours of work. Pipeline projects provide economic development opportunities, new streams of tax revenue, and well-paying jobs. It is important that U.S. policymakers continue to welcome investment in our energy infrastructure network to meet our energy needs at home and abroad.

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