Judge dismisses challenge blocking $2 billion pipeline in the Permian Basin

A judge in Houston has dismissed a challenge to eminent domain used to create the nearly $2 billion Permian Highway Pipeline Project. All claims against the project were dismissed, leading Kinder Morgan, Inc. to applaud the decision.

“The court’s finding validates the process established in Texas for the development of natural gas utility projects, as well as the steps we have taken to comply with that process,” said Tom Martin, President of Natural Gas Pipelines for KMI. “We will continue to engage all stakeholders as we work to complete the Permian Highway Pipeline.”

He said the eminent domain process ensures that no single landowner can block critical infrastructure necessary to move the energy needed to heat and cool homes, schools, businesses and public buildings in Texas.

 

The PHP project is an approximately $2 billion project that will help provide the infrastructure needed to allow further development of the Permian Basin in West Texas by providing an outlet for increased Permian natural gas production to growing market areas along the Texas Gulf Coast and Hill Country area.

Upon completion, PHP will transport up to 2.1 billion cubic feet per day (Bcf/d) of dry natural gas, and only dry natural gas, through approximately 430 miles of 42-inch pipeline from the Waha, Texas area to the Katy, Texas area, Texas Gulf Coast markets, and Hill Country area.

This project is expected to provide almost $1 billion in additional revenue each year to the state of Texas and its counties to support local schools, first responders and other vital needs. Additionally, individual leaseholders are projected to receive more than $2 billion per year in new oil and natural gas royalties.

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