$2B pipeline in the works

​​​​​​​​​​​​PERMIAN BASIN – A couple of local midstream companies are teaming up on another natural gas pipeline from the Permian Basin to the Texas Gulf Coast.

Kinder Morgan Texas Pipeline LLC, Midland-based EagleClaw Midstream Ventures LLC, and Houston-based Apache Corp. plan to develop the proposed Permian Highway Pipeline Project.

The PHP Project would transport up to two billion cubic ft of natural gas per day through a 42-inch pipeline running 430 miles from the Waha​ Hub to the U.S. Gulf Coast and Mexico markets.

The companies signed a letter of intent for the $2 billion project, which is expected to be in service in late 2020.

KMTP will build and operate the pipeline, and Apache and EagleClaw will be significant shippers.