Talks are underway at Kinder Morgan as the company wants to build a third natural gas pipeline serving the Permian Basin.
Chief Executive Officer Steven Kean told investors this week demand continues to surge for gas takeaway capacity and natural gas production has outgrown the pipeline capacity.
“Demand to get gas out of the Permian continues to grow and the desire to unlock value that’s in oil and (natural gas liquids) continues to put pressure on need for additional takeaway capacity,” Kean said. “There is interest in pipe three.”
Kinder Morgan’s Gulf Coast Express natural gas pipeline in the Permian Basin is set to come into service in October. Another similar project, the Permian Highway, is on schedule to begin service one year later.