Kinder Morgan, DCP Midstream, Targa Resources to develop Gulf Coast express pipeline project

HOUSTON — Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder Morgan, Inc., DCP Midstream, LP and an affiliate of Targa Resources Corp. announced they have signed a letter of intent with respect to the joint development of the proposed Gulf Coast Express Pipeline Project (GCX Project), which would provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast.

The participation of the three parties involved with the GCX Project is subject to negotiation and execution of definitive agreements among KMTP, DCP Midstream and Targa. As part of the definitive agreements, Targa and DCP Midstream would commit significant volumes to the proposed project, including certain volumes provided by Pioneer Natural Resources Company, a joint owner in Targa’s WestTX Permian Basin system and one of the largest producers in the Permian Basin.

The capacity of the GCX Project is expected to be approximately 1.92 Bcfd and would include a lateral into the Midland Basin, consisting of approximately 50 mi of 36-in. pipeline and associated compression to serve gas processing facilities owned by Targa, as well as facilities owned jointly by Targa and Pioneer.

The expected in-service date of the pipeline continues to be scheduled for the second half of 2019, pending the timely completion of definitive agreements with shippers and a final investment decision by the three parties. Per the terms of the letter of intent, KMI would build, operate and own a 50% interest in the GCX Project, and DCP Midstream and Targa would each hold a 25% equity interest in the project.

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