Kinder Morgan to commence work on $2bn Permian Highway Pipeline

Kinder Morgan has received approval to begin work on the $2bn Permian Highway Pipeline (PHP) Project after the Travis County District Court dismissed all claims made against the gas pipeline.

In April, a group of Texas landowners and officials filed a legal challenge to block construction of the project. The group alleged that the oil and gas regulator failed to seek proper public feedback on the routing of the Permian Highway Pipeline.

The court decision eliminates challenges to the state licensing process that currently allows gas pipeline companies to make their own route and acquire land without a landowner’s consent.

Kinder Morgan natural gas pipelines president Tom Martin said: “Kinder Morgan is very pleased with the ruling made by the Travis County District Court.

“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. We will continue to engage all stakeholders as we work to complete PHP.”

The PHP project will provide an outlet for natural gas production from the Permian Basin in West Texas to growing market areas along the Texas Gulf Coast.

The project involves the construction of a 430-mile, 42in pipeline to transport up to two billion cubic feet per day (Bcf/d) of natural gas from Waha, Texas, to the US Gulf Coast and Mexico markets.

The PHP project is expected to provide more than $1bn in additional revenue each year to the state of Texas. Individual leaseholders are also expected to receive over $2bn a year in new oil and natural gas royalties.

Based in North America, Kinder Morgan is an energy infrastructure company that operates approximately 84,000 miles of pipelines and 157 terminals.