HOUSTON (ICIS)--Kinder Morgan, DCP Midstream and Targa Resources have made a final investment decision (FID) to proceed with their previously announced $1.7bn Gulf Coast Express Pipeline Project (GCX Project) to ship natural gas from the Permian basin to a terminal near Corpus Christi, Texas, the companies said on Thursday.
The pipeline will transport up to 1.92bn cubic feet per day (bcf/day) of natural gas after coming into service in October 2019.
The GCX Project Mainline portion consists of about 82 miles of 36-inch pipeline and 365 miles of 42-inch pipeline originating at the Waha Hub near Coyanosa, Texas in the Permian basin and terminating near Agua Dulce, west of Corpus Christi.
Additionally, the Midland Lateral portion consists of about 50 miles of 36-inch pipeline and associated compression, connecting with the GCX Project Mainline.
The FID comes as the project has secured sufficient firm transportation agreements with shippers.
About 85% of the project capacity is subscribed and committed under long-term, binding transportation agreements, and the partners expect that the remaining capacity will be subscribed by early 2018.
Kinder Morgan will build, operate and own a 50% interest in the GCX Project, and DCP Midstream and Targa will each hold a 25% equity interest in the project.
One of the project’s committed shippers, Apache, has an option to purchase up to a 15% equity stake in the project from Kinder Morgan.