Permian Pass Gas Pipeline

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Permian Pass Gas Pipeline was a proposed natural gas pipeline in the Permian Basin, USA.[1] As of 2023 it is inferred to be cancelled.

Location

The pipeline's route is unclear, and no maps have been found in researching the line as of August 2021.

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Project details

  • Owner: Kinder Morgan Energy Partners[1]
  • Parent company: Kinder Morgan
  • Capacity: 2000 MMcf/d[2]
  • Status: Cancelled[3][4][5]
  • Start year: 2023[2]
  • Cost: US$2 billion[6]

Background

In March 2020, Kinder Morgan's Chief Strategy Officer told analysts at the Credit Suisse Energy Summit in Vail, Colorado, that the company would not build the Permian Pass project until they've acquired solid long-term contracts for the project. He stated that the project faced an uncertain future since they've found no potential customers for the project in the low-price environment.[1]

The pipeline was proposed to transport natural gas from the West Texas shale play to interstate pipelines and LNG export terminals in Louisiana and East Texas.[7]

In July 2020 as Kinder Morgan posted its Q2 2020 results, an industry source told Reuters that, due to ongoing uncertainties over the Permian Pass project, the final investment decision would likely be delayed for at least a further two years.[8]

As of August 2021, no development plants had been noted on the pipeline, and multiple reports seemed to confirm that Kinder Morgan is placing the project on hold. As a result, it is formally considered shelved.[3][4][5]

As of October 2022, no evidence for further development could be found.

Since October 2019, Kinder Morgan has put the project on hold.[9] There hasn't been any update on the pipeline since, and the project is considered cancelled as of 2023.

Articles and resources

References

  1. ↑ 1.0 1.1 1.2 Kinder Morgan uncertain about proposed Texas Permian Pass natgas pipeline, Reuters, Mar. 20, 2020, accessed Sep. 1, 2021.
  2. ↑ 2.0 2.1 "Natural Gas Data - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2023-08-04.
  3. ↑ 3.0 3.1 New Permian pipe already altering basin dynamics, Natural Gas Week, Jan. 11, 2021, accessed Sep. 1, 2021.
  4. ↑ 4.0 4.1 Jordan Smith, Natural gas in Permian Basin to hit record levels, Choose Energy, Sep. 28, 2020, accessed Sep. 1, 2021.
  5. ↑ 5.0 5.1 Permian on track to massively overbuild gas pipelines, Energy Intelligence, East Daley Capital, Apr. 27, 2020, accessed Sep. 1, 2021.
  6. ↑ "The Next Permian Pipeline? KMI has a Silver 'Bullet' for Data Centers | East Daley Analytics". East Daley Analytics. Retrieved 2025-10-13.
  7. ↑ Kinder Morgan assess options for Permian Pass, Pipelines International, Mar. 13, 2020, accessed Sep. 1, 2021.
  8. ↑ Arundhati Sarkar, Kinder Morgan posts quarterly loss on $1 billion impairment charge, Reuters, Jul. 22, 2020, accessed Sep. 1, 2021.
  9. ↑ Evans, Caroline (2019-10-24). "Kinder Morgan puts Permian Pass on hold". Upstream Online | Latest oil and gas news. Retrieved 2023-08-04.

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External resources

External articles