Altus Midstream acquires 15% of GCX pipeline project
11 January 2019
Altus Midstream Company has announced its subsidiary, Altus Midstream LP, has exercised and closed its option with Kinder Morgan Texas Pipeline LLC (Kinder Morgan) to acquire a 15% equity interest in the Gulf Coast Express Pipeline Project (GCX). The approximately USD 1.75 B project is designed to transport up to 1.98 billion cubic feet (BCF) of natural gas per day from the Waha Hub and other points in the Permian Basin to the Agua Dulce Hub near the Texas Gulf Coast. GCX is under construction and expected to enter service in October 2019 pending regulatory approvals. Kinder Morgan (NYSE: KMI) now owns a 35% equity interest in the project after the closing of the Altus Midstream option. Kinder Morgan is also constructing and operating the pipeline. Subsidiaries and/or affiliates of DCP Midstream (NYSE: DCP) and Targa Resources Corp. (NYSE: TRGP) each hold a 25% equity interest in GCX.
Altus Midstream and/or its subsidiaries hold options to purchase equity ownership in four other planned pipelines, including: (i) Salt Creek NGL Line (50%), (ii) Shin Oak (33%), (iii) EPIC Crude (15%), and (iv) Permian Highway (33%).