Permian Basin Natural Gas Pipeline Goes into Service

Permian Basin Natural Gas Pipeline Goes into Service

A major pipeline to transport natural gas out of the Permian Basin to market went into service at the start of 2021 as the fossil fuel markets continued to show gradual signs of recovery from a historic collapse last spring created by the COVID-19 health crisis.

The Permian Highway Pipeline, owned by Kinder Morgan, went into full service on Jan. 1, delivering natural gas from the Waha Hub on the Texas side of the Permian to Katy, Texas, near Houston with connections to the refinery and export markets on the Gulf Coast.

The pipeline was in operation for several weeks ahead of full commercial service while capacity was being commissioned by shippers. The Permian Highway Pipeline brought about 2.1 billion cubic feet per day of transport capacity for natural gas, which could improve takeaway in the region – known as one the U.S.’ and the world’s most prolific shale plays – and see a reduction in releasing excess gas through venting or flaring.

Kinder Morgan Natural Gas Midstream President Sital Mody said the project’s completion would provide an economic boon for Texas and the Permian Basin region, which straddles West Texas and southeast New Mexico, as the basin continues to provide vast fossil fuel resources in the coming decades.

He said once the COVID-19 health crisis subsides and the fossil fuel market stabilizes, the pipeline will allow the company and other operators to capitalize on any future booms in production.