Apache eyes LNG feed gas supplies with GCX project deal

  • Project & Tenders

Apache Corporation secured 500 million cubic feet per day of natural gas transport capacity via the Gulf Coast Express pipeline project (GCX project) gaining access to incremental demand for LNG exports. 

The GCX project will connect the Waha hub in Coyanosa, Texas in the Permian Basin to Agua Dulce, Texas near the Texas gulf coast, and in addition to LNG exports demand it will also gain access to domestic industrial and utility users as well as Mexico markets.

The company has also secured an option for up to 15 percent equity stake in the pipeline.

“The takeaway capacity we have secured will allow greater flexibility and market optionality for our Permian production, including increasing volumes from our recent discovery at Alpine High. Our participation in the GCX project ensures we will be able to deliver gas to the Gulf Coast where we can access growing market demand,” Brian Freed, Apache’s senior vice president, midstream and marketing said.

The GCX pipeline is a joint project of Kinder Morgan Texas Pipeline (KMTP), a unit of Kinder Morgan, DCP Midstream and an affiliate of Targa Resources (Targa). The approximately $1.7 billion GCX project is designed to transport up to 1.92 billion cubic feet per day (Bcf/d) of natural gas.

The GCX project mainline portion consists of approximately 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, Texas.

The project is expected to be in service in October 2019. KMI will build, operate and own a 50 percent interest in the GCX project, and DCP Midstream and Targa will each hold a 25 percent equity interest in the project.

Related news

List of related news articles