Midstream Companies Expected to Pour Billions into Permian Infrastructure

Midland Reporter-Telegram, January 3, 2018

A number of pipeline projects have been announced as Permian Basin producers continue to bring more crude and natural gas to the surface. 

Among the most recent announcements is the Gray Oak Pipeline, a joint venture between Phillips 66 and Enbridge Inc., which is expected to have an initial capacity of 385,000 bpd.  

Kinder Morgan, DCP Midstream, and Targa Resources also recently announced they are moving forward with their Gulf Coast Express Pipeline Project, a $1.7 billion project designed to transport up to 1.92 billion cubic feet per day (Bcf/d) of natural gas from the Permian to the Gulf Coast.

Rich Dealy, chief financial officer with Pioneer Natural Resources, said “The Permian is the largest and fastest growing oil field in the U.S., so adding additional takeaway capacity is critical to support the industry’s growth."

Aaron Blomquist, managing director, investment banking with Tudor, Pickering, Holt & Co., predicts midstream companies will continue to focus on the region to build infrastructure and create jobs, adding that he believes “There will be billions spent, between natural gas, crude and natural gas liquids."

Click here to read the full article from Midland Reporter-Telegram.

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