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Exxon unit to support Kinder Morgan's 2nd Permian-to-Gulf Coast gas pipeline

An Exxon Mobil Corp. unit signed an intent to support the proposed $2 billion Permian Highway Pipeline project, designed to move natural gas from the Permian Basin to the Texas Gulf Coast.

XTO Energy Inc. may contract up to 450 MDth/d of capacity on the pipeline. Kinder Morgan Inc. unit Kinder Morgan Texas Pipeline LLC, Apache Corp. and Blackstone Energy Partners portfolio company EagleClaw Midstream Services LLC recently announced plans to develop the Permian Highway Pipe project, which would transport up to 2 Bcf/d of natural gas along about 430 miles of 42-inch pipeline from the Waha, Texas, area to the U.S. Gulf Coast and Mexico markets.

Kinder Morgan Texas Pipeline and EagleClaw will each own 50% of the Permian Highway project, while Apache has the option to buy up to 33% equity in the project. Apache and EagleClaw will both be significant shippers on the proposed line, with each entity planning to commit up to 500 MDth/d to the project, which is expected to come online in late 2020.

XTO also recently committed to firm transportation capacity on Summit Midstream Partners LP's Double E pipeline under a 10-year, take-or-pay firm transportation agreement. The Double E is designed to connect a growing supply of associated natural gas from the Northern Delaware Basin to a liquid trading point with multiple current and planned takeaway pipelines to demand centers along the U.S. Gulf Coast and Mexico.