The official start of Kinder Morgan Inc.’s 2.1 Bcf/d Permian Highway Pipeline (PHP) from the Permian Basin in West Texas to Katy, outside of Houston, could mean higher prices for buyers on the Waha-to-Guadalajara or “Wahalajara” system.

Waha price

In early October, Mexico’s state power utility Comisión Federal de Electricidad (CFE) announced the start of commercial operations of the final leg of Fermaca’s pipeline system, which transports gas from the Permian to the industrial center of Guadalajara in the Bahío region of central-western Mexico.

PHP was mechanically complete on Nov. 1, and the 2.1 Bcf/d conduit is expected to be fully in service in the early first quarter of 2021.

“Permian Highway has officially started up, but they started packing the line several weeks...