Cogent Midstream LLC is planning to build a residue natural gas pipeline with 400 MMcf/d of capacity to a processing facility in the Permian Basin’s Midland formation, which would connect to the hotly anticipated 2 Bcf/d Gulf Coast Express (GCX), set for start-up this fall.
The Dallas-based midstreamer said the 20-inch diameter residue pipeline, scheduled for start-up in 4Q2019, would traverse 25 miles from the Big Lake Plant, which is in West Texas in Reagan County, to GCX. The pipeline’s start-up would coincide with commissioning its additional 200 MMcf/d cryogenic processing plant at Big Lake, aka Big Lake II, which would give the company 510 MMcf/d of total processing capacity in the Midland.
"Cogent's investments in the Big Lake II plant and the residue gas pipeline to GCX continue to demonstrate the high level of commitment we've made to serving our customers," said CEO Dennis McCanless. "Both projects are designed to ensure that Cogent's producers have the reliable service and optionality they need to efficiently move their volumes to growing markets and achieve the best possible netbacks."
GCX, a joint venture between subsidiaries of Kinder Morgan Inc. (KMI), DCP Midstream and Targa Resources Corp., is building the 42-inch diameter mainline, now scheduled to begin service in early October. GCX would move nearly 2 Bcf/d to the Agua Dulce Hub near Corpus Christi in South Texas.
GCX is one of several pipeline projects scheduled to start up in the next two years that are eagerly awaited by Permian producers. A glut of associated gas from oil drilling has crippled spot prices to historic lows for weeks. Apache Corp., one of the Permian’s largest gas producers, on Tuesday said it would defer production volumes from its massive Alpine High project in the Delaware sub-basin in response to the low prices.
Cogent, sponsored by EnCap Flatrock Midstream, said the residue pipeline also may connect with the Permian Highway Pipeline (PHP) and the still unsanctioned Whistler Pipeline, both of which are designed with 2 Bcf/d of takeaway capacity. PHP is set to come online in the second half of 2020. Whistler also would deliver gas to Agua Dulce.