NGI - Gulf Coast Express Sees Initial Natural Gas Flows; First Spot Transactions Recorded

August 15, 2019 – Natural Gas Intelligence

Gulf Coast Express Sees Initial Natural Gas Flows; First Spot Transactions Recorded

By Jeremiah Shelor

The commissioning process has begun for Kinder Morgan Inc.’s highly anticipated 2 Bcf/d Gulf Coast Express (GCX) pipeline, and NGI has recorded the first spot price transactions on the new pipe as it progresses toward full-service next month.

The fully subscribed $1.75 billion pipeline is designed to connect the Permian Basin to the Agua Dulce hub near Corpus Christi in South Texas. Given the Permian’s robust production growth and well documented constraints, GCX is expected to provide a major step up in natural gas flows out of the play.

Last month, Kinder management said it expected GCX to start up by late September, earlier than the previous target start date in October. With commissioning underway, GCX remains on track to start commercial operations on Sept. 20, the company confirmed to NGI on Thursday.

As part of the GCX construction, “we have flowed some commissioning gas to purge and pack the pipeline, and are undergoing equipment testing to ensure all aspects of the GCX construction efforts are working as designed,” spokesperson Katherine Hill said. “We will continue this process as we plan commissioning of the compressor stations for the pipeline in the next few weeks.”

According to RBN Energy LLC analyst Jason Ferguson, El Paso Natural Gas began delivering into GCX late last week, with volumes up to around 250 MMcf/d as of Thursday.

Read the full article here: https://www.naturalgasintel.com/articles/119301-gulf-coast-express-sees-first-natural-gas-flows-first-spot-transactions-recorded