Gulf Coast Express Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Gulf Coast Express Pipeline, also known as GCX, is an operating natural gas pipeline in Texas, USA.[1] An additional capacity expansion is proposed.

Location

The pipeline runs from Coyanosa, Texas, USA to Agua Dulce, Texas, USA, and a proposed lateral extending to Midland, Texas, USA.[2]

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Project details

  • Operator:
  • Owner: Gulf Coast Express Pipeline LLC (GCX)[3]
  • Parent company: Kinder Morgan [34%], DCP Midstream LP [25%], Arclight Capital Partners LLC [25%]; Kinetik Holdings Inc [16%][4]
    • Arclight Capital Partners LLC acquired 25% ownership from Targa Resources Corp.[5] in May 2022[4]
  • Capacity: 1,980 million cubic feet per day[6]
  • Length: 497.5 mi[6]
  • Diameter: 36, 42 in[6]
  • Cost: US$1,750,000,000[6]
  • Status: Operating[6]
  • Start Year: 2019[6]

Background

Kinder Morgan started construction on the Gulf Coast Express Pipeline Project (GCX Project) in May 2018. The approximately $1.75 billion GCX Project is designed to transport up to 1.98 Bcf/d of natural gas from the Permian Basin to the Agua Dulce, Texas area and is now fully subscribed under long-term, binding transportation agreements. The project is expected to be in service in October 2019, pending the receipt of necessary regulatory approvals. Shippers that have committed to the project include the following: DCP Midstream, Targa, Apache Corporation, Pioneer Natural Resources Company and XTO Energy, a subsidiary of ExxonMobil. KMTP also has committed volumes that are backstopped by a long-term purchase agreement that locks in the equivalent transport fee on the pipeline. Kinder Morgan will build, operate and own a 50 percent interest in the GCX Project, and subsidiaries/affiliates of DCP Midstream and Targa Resources will each hold a 25 percent equity interest in the project. In addition to transportation agreements, shipper Apache Corporation has an option to purchase up to a 15 percent equity stake in the project from Kinder Morgan.[7]

The pipeline came online in September of 2019.[8]

In February 2022, Targa Resources Corp. executed agreements to sell its subsidiary Targa GCX Pipeline to an undisclosed buyer for US$857 million.[9]

Expansion projects

Capacity Expansion

In April 2022, Kinder Morgan released a binding open season for an incremental 650 MMcf/d of capacity on the Permian Highway Pipeline and also noted a similar expansion would be planned for the Gulf Coast Express Pipeline.[10]

In May 2022, Kinder Morgan announced an open season for the expansion project, noting an incremental increase of 570 MMcf/d from compression expansions. The project was expected to be in operation by December 2023. The open season began 5 May 2022 and ended 6 June 2022.[3] In March 2023, Kinetik Holdings talked down the possibility of the expansion during the company's fourth quarter earnings call. It stated that a new greenfield project out of the Permian Basin was more appealing to upstream operators.[11] In July 2023, Kinder Morgan discussed renewed interest in a GCX expansion.[12]

  • Operator: Gulf Coast Express Pipeline LLC (GCX)[3]
  • Owner: Gulf Coast Express Pipeline LLC (GCX)[3]
  • Parent company: Kinder Morgan [34%], DCP Midstream LP [25%], Arclight Capital Partners LLC [25%]; Kinetik Holdings Inc [16%][4]
    • Arclight Capital Partners LLC acquired 25% ownership from Targa Resources Corp.[5] in May 2022[4]
  • Capacity: 570 MMcf/d
  • Length: 0 new kilometers (capacity expansion only)
  • Status: Proposed[10]
  • Start year: 2023
  • Cost:
  • Financing:
  • Associated infrastructure:

Articles and resources

References

  1. Ongoing Projects, Pipeline News, accessed October 2018
  2. National Energy and Petrochemical Map , FracTracker, February 28, 2020
  3. 3.0 3.1 3.2 3.3 "Gulf Coast Express Pipeline Announces Open Season for Expansion Project". ir.kindermorgan.com. Retrieved 2022-08-05.
  4. 4.0 4.1 4.2 4.3 ArcLight Capital Partners. "ArcLight Completes Acquisition of a 25% Interest in the Gulf Coast Express Pipeline". www.prnewswire.com. Retrieved 2022-08-05.
  5. 5.0 5.1 Enbridge’s Energy Infrastructure Assets Enbrdige, July 22, 2020
  6. 6.0 6.1 6.2 6.3 6.4 6.5 Natural Gas Data, Pipeline Projects Energy Information Agency, July 21, 2020
  7. Gulf Coast Express Pipeline Project, Kinder Morgan, accessed October 2018
  8. Kinder Morgan's Gulf Coast Express Pipeline Comes Online, Yahoo Finance, September 25, 2019
  9. "Targa Resources to sell 25% stake in Gulf Coast Express Pipeline". Oil & Gas Journal. Retrieved 2022-02-06.{{cite web}}: CS1 maint: url-status (link)
  10. 10.0 10.1 "Run for the Roses - An Update on the Race to Add Permian Gas Pipeline Capacity | RBN Energy". web.archive.org. 2022-05-05. Retrieved 2022-07-12.
  11. "Kinetik Throws Cold Water on Gulf Coast Express Expansion". Retrieved 2023-09-07.
  12. "Natural Gas Drives Permian Pipeline Growth". NASDAQ. 15 August, 2023. Retrieved 07 September, 2023. {{cite web}}: |first= missing |last= (help); Check date values in: |access-date= and |date= (help)CS1 maint: url-status (link)

Related GEM.wiki articles

External resources

External articles