Altus Midstream Co. unit Altus Midstream LP closed its acquisition of a 15% stake in the Gulf Coast Express pipeline project in Texas from Kinder Morgan Texas Pipeline LLC for an undisclosed sum.
The Gulf Coast Express pipeline will carry up to 1.98 Bcf/d of natural gas from the Waha Hub and other points in the Permian Basin of West Texas to the Agua Dulce Hub near the Gulf Coast, according to a Dec. 19 release from Altus Midstream. It is estimated to cost $1.75 billion.
Gulf Coast Express is under construction and is scheduled to begin service in October 2019, subject to regulatory approvals.
"With our purchase of a [15%] interest in GCX, we've taken a major step in executing on our vision of being the only publicly traded, pure-play, Permian Basin C-corporation with wellhead-to-water connectivity," said Brian Freed, who is CEO, president and director of Altus Midstream. "The access GCX provides to the natural gas hub at Agua Dulce will allow us to participate in the full Permian-to-Gulf Coast midstream value chain."
Following the transaction, Kinder Morgan Inc., which is building the pipeline and will operate it, holds a 35% stake in the project. Affiliates of DCP Midstream LP and Targa Resources Corp. each own a 25% stake.
Altus Midstream is a Houston-based Permian Basin midstream company that owns natural gas gathering, processing and transportation assets serving Apache Corp.'s production in the Alpine High play of the Delaware Basin. It was formed through a deal between Apache and Kayne Anderson Acquisition Corp.