Against a backdrop of rising demand for natural gas across Europe (as well as a not irrational fear that all gas flows from Russia may be stop in the near future), Kinder Morgan, the American pipeline operator, has indicated that it intends to underwrite the expansion of the 689-km natural gas pipeline that brings natural gas from the Permian Basin in West Texas to export hubs around Houston.

The expansion comes as several new LNG processing plants have been proposed along the U.S. Gulf Coast to meet rising demand in Europe and Asia. The proposed LNG plants would require about 3.1 billion cubic feet per day (Bcf/d) of new gas supply.

The expansion would add 550 MMcf/d with the higher capacity available starting in November, 2023, Kinder Morgan said. The project still requires approvals and permitting.

The project will involve primarily compression expansions on PHP to increase natural gas deliveries from the Waha area to multiple mainline connects, Katy, Texas and various U.S. Gulf Coast markets, says Kinder Morgan. Pending further customer commitments, the target in-service date for the project is October 1, 2023.

"The project will alleviate transportation constraints out of the Permian Basin," said Sital Mody, president of Kinder Morgan's natural gas midstream business.

A separate gas pipeline expansion that carries natural gas from the Permian Basin to points along the south Texas coast, remains under consideration, a spokesperson said. That project, called the Gulf Coast Express (GCX) expansion, would add nearly 570 MMcf/d to existing capacity.

Pending further customer commitments, the target in-service date for the project is October 1, 2023.