Houston’s Kinder Morgan and Midland-based EagleClaw Midstream said they’ve authorized the proposed $2 billion Permian Highway Pipeline project to transport natural gas from West Texas to Houston and other hubs. The project is part of the race to build gas and oil pipelines from the booming Permian Basin to refining and port hubs near Houston and Corpus Christi. Permian production is currently stalling from pipeline shortages to carry the oil and gas out of rural and landlocked West Texas.
The 430-mile Kinder Morgan project is backed by customer support from Exxon Mobil and Houston-based Apache Corp., which also has the option of buying a one-third stake in the pipeline through its proposed spinoff company, Altus Midstream. For now, Kinder Morgan and EagleClaw are 50-50 partners.