US-based energy company Kinder Morgan has announced that the Permian Highway Pipeline (PHP) has entered full commercial services.
The $2bn pipeline will transport natural gas from the Permian Basin in West Texas to the Gulf Coast.
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The full commercial in-service began after flowing volumes through the pipeline for several weeks during the commissioning process.
Kinder Morgan Natural Gas Midstream president Sital Mody said: “We are extremely pleased to have placed PHP in service. We are very proud of our team’s ability to execute and that we were able to complete this critical infrastructure project in the midst of a global pandemic.
“PHP will continue to provide environmental benefits and economic value to the state of Texas for many years to come.
“We believe that the Permian Basin will remain an important supply basin for decades, and our strong network of pipelines provides the ability to connect this supply to critical markets along the Gulf Coast.”
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By GlobalDataKinder Morgan Texas Pipeline (KMTP), a subsidiary of the company, operates the pipeline with nearly 26.7% of its interest.
EagleClaw Midstream (26.7%), Altus Midstream (26.7%) and an affiliate of an anchor shipper (20%) are the other stakeholders.
The pipeline is designed to transport up to 2.1 billion cubic feet per day (Bcf/d) of natural gas from the Waha area in Texas to the US Gulf Coast and Mexican markets.
Last year, Kinder Morgan reduced its planned expenditure after the Covid-19 pandemic cut demand.
