Kinder Morgan Inc. (KMI) is planning compression expansions on its Permian Highway Pipeline (PHP) and Gulf Coast Express (GCX) natural gas pipelines in order to alleviate takeaway constraints in the Permian Basin expected to mount by 2023.

waha graph

“Combined, the two expansions can add 1.2 Bcf per day of capacity out of the Permian,” CEO Steven Kean told analysts Wednesday during a conference call to discuss first-quarter earnings.

Once a final investment decision (FID) is taken, KMI estimates the expansions could be in service within 18 months, meaning they may be online as soon as 4Q2023, management said.

[Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to NGI’s Daily Gas Price Index]

“We believe the market will need that...