A joint venture outlines plans for new 1,000 km pipeline on the Permian Basin

A joint venture (JV) has signed a Letter of Intent for the development of a new pipeline to transport gas from the Permian Basin to growing markets along the Gulf Coast of Texas.

The JV is comprised of Targa Resources; NextEra Energy Pipeline Holdings, subsidiary of NextEra Energy Resources; WhiteWater Midstream, a portfolio company of Denham Capital Management and Ridgemont Energy Partners; and MPLX. The JV announced its plans to construct the approximately 1,000 km Whistler Pipeline Project, designed to transport 56.5 million m3/ day of natural gas.

The project includes 724 km of 42 inch (1,067 mm) pipeline from Waha, Texas to NextEra’s Agua Dulce market hub, with an additional 234 km of 30 inch (762 mm) of pipeline continuing to Wharton County.

Supply for the pipeline will be sourced from multiple upstream connections in the Midland and Delaware Basins, including direct connections to Targa plants through an approximately 43.5 km, 30 inch lateral pipeline, as well as a direct connection to the Agua Blanca Pipeline which has a capacity of approximately 39.5 million m3/d.

Targa, NextEra, MPLX and WhiteWater, and their respective producer customers, have committed volumes in excess of 42.5 million m3/d to the project.

The JV plans to enter the pipeline into operation before the end of 2020, subject to the execution of definitive agreements and the receipt of regulatory approvals.

The Whistler Pipeline will be constructed by NextEra Energy Pipeline Holdings and operated by Targa.