MIDLAND, TX (KWES) - A cross-state pipeline project from the natural gas transportation company Kinder Morgan and investment partner EagleClaw Midstream Ventures is looking to transport methane gas from West Texas to the state’s Gulf Coast.
The project is worth $2 billion and will build a 42-inch underground pipeline that spans from Waha to the Kinder Morgan’s infrastructure in the Gulf Coast.
The pipeline will be capable of transporting 2.1 billion cubic feet of natural gas per day.
Kinder Morgan’s Vice President, Allen Fore says it’s a project that will curb the waste of natural gas in the Permian Basin.
“It’s the Permian Basin that has changed the plumbing, if you will, of the energy supply of the world, though you can have all the supply in the world, but if you can't move it that’s a problem,” said Fore.
The Permian Highway Pipeline will provide transport for a number of natural gas shippers across the state of Texas, one of the biggest which is Atlus, an investment division associated with the Apache Corporation.
The project also provides a more environmentally friendly output rather than being burned off at a oil rig’s flare.
“It’s not good for the environment and it’s a waste of a very important commodity, a commodity that can heat and cool homes and businesses, it can also be used for power generation, and used for trade with our export partners like Mexico,” said Fore.
Fore also says the communities that have natural gas shippers could potentially benefit from millions of dollars in annual tax money.
“You can not overstate the value of that to local schools, counties, law enforcement and all the other beneficiaries of the various taxes,” said Fore.
Construction on the pipeline is expected to start towards the end of the year and could be completed as early as next year.