The pipeline builder said it expects PHP to be fully in service in early 2021, despite permitting delays and the current pandemic environment. The Permian Highway Pipeline (PHP) will add another 2 Bcf/d of takeaway capacity from the Permian Basin.
The confirmation from Kinder’s 2Q2020 earnings call is good news for Permian oil producers who need to dispose of their associated gas. Up until the recent drop in production, many operators were producing too much gas for the amount of outbound pipeline capacity. Read Cal 21 Waha Basis Is Near The Best Its Been In Two Years for more details on Waha price action and production.
PHP is planned to transport natural gas 430 miles from the Waha Hub near Pecos County, Texas to Katy, Texas about 30 miles west of Houston.
Kinder Morgan also said PHP’s construction is nearly 80% mechanically complete on the pipeline. Compression on the mainline is 97% complete. The pipeline has faced tough environmental opposition and continues to battle ongoing litigation. However, the company has overcome many obstacles, particularly the Supreme Court decision to stay the injunction against the Army Corps Nationwide Rule 12 permitting process, according to the July 22 earnings call.