Altus Midstream Company has announced its subsidiary, Altus Midstream LP, has exercised and closed its option with Kinder Morgan Texas Pipeline LLC (Kinder Morgan) to acquire a 15% equity interest in the Gulf Coast Express Pipeline Project (GCX). The approximately US$1.75 billion project is designed to transport up to 1.98 billion ft3/d of natural gas from the Waha Hub and other points in the Permian Basin to the Agua Dulce Hub near the Texas Gulf Coast. GCX is under construction and expected to enter service in October 2019 pending regulatory approvals. Kinder Morgan now owns a 35% equity interest in the project after the closing of the Altus Midstream option. Kinder Morgan is also constructing and operating the pipeline. Subsidiaries and/or affiliates of DCP Midstream and Targa Resources Corp. each hold a 25% equity interest in GCX.
“We are excited to participate in the Gulf Coast Express Project; the pipeline will serve as a critical transportation outlet for Permian Basin natural gas, and the pipeline capacity is fully subscribed by long-term minimum volume commitments. With our purchase of a 15% interest in GCX, we’ve taken a major step in executing on our vision of being the only publicly traded, pure-play, Permian Basin C-corporation with wellhead-to-water connectivity. The access GCX provides to the natural gas hub at Agua Dulce will allow us to participate in the full Permian-to-Gulf Coast midstream value chain,” said Brian Freed, Altus Midstream CEO and President. “With four additional equity options in top-tier, Permian Basin pipeline projects and our substantial gathering and processing system built to serve the world-class Alpine High play, we are well-positioned for long-term growth.”
Altus Midstream and/or its subsidiaries hold options to purchase equity ownership in four other planned pipelines, including:
- Salt Creek NGL Line: Option for 50% interest in an NGL header from Alpine High to Waha; operated by Salt Creek Midstream, expected in-service date in 1Q19.
- Shin Oak: Option for up to 33% interest in a long-haul NGL line to Mont Belvieu; operated by Enterprise Products Partners, expected in-service date in 2Q19.
- EPIC Crude: Option for up to 15% interest in a crude oil pipeline to Corpus Christi; operated by EPIC Midstream Holdings, expected in-service date in 1Q20.
- Permian Highway: Option for up to 33% interest in a proposed natural gas pipeline to Katy/Agua Dulce; operated by Kinder Morgan, expected in-service date in 4Q20.
Read the article online at: https://www.worldpipelines.com/business-news/20122018/altus-midstream-acquires-portion-of-gulf-coast-express-pipeline/