New partnership for natural gas pipeline in Reeves county


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Kinder Morgan, EagleClaw, Apache to develop natural gas pipeline

Kinder Morgan Texas Pipeline, Midland-based EagleClaw Midstream Ventures and Apache Corp. said this week they have signed an agreement to develop the Permian Highway pipeline to provide an outlet for natural gas production from the Permian Basin to markets on the Texas Gulf Coast and in Mexico. The $2 billion project is intended to transport up to 2.0 billion cubic feet per day of natural gas through 430 miles of 42-inch pipeline from Waha. It is expected to be in service late 2020. KMTP is a subsidiary of Kinder Morgan, Inc., and EagleClaw is a portfolio company of Blackstone Energy Partners. Apache and EagleClaw will be significant shippers, and KMTP will build and operate the pipeline.

Bob Milam, CEO of EagleClaw, said Monday, “We have evaluated many different pipeline options over the last 18 months, and we believe that this project has the best and broadest end-market options that will maximize overall net-back value and end-market flexibility for our customers.”

Brian Freed, senior vice president at Apache, added, “The estimated in-service date of the project also coincides with growth and scale of our production forecast for Alpine High as well as other Permian production.”

Melissa Ruiz of Kinder Morgan told the Midland Reporter Telegram that the company expects continued rising demand from numerous LNG facilities, industrial and power generation plants on the Texas coast, and Mexico.