Energy Transfer LP is joining a growing list of energy companies looking to build the next pipeline to transport growing amounts of natural gas production from the Permian Basin, the largest U.S. shale field, in West Texas and eastern New Mexico to export hubs on the Gulf Coast.
"Given the proposed route and our ability to utilize existing assets, we believe we could complete construction of (the Permian) project in two years or less once we have reached a final investment decision," Energy Transfer Co-Chief Executive Thomas Long told analysts on an earnings call this week.
With production growing fast in the Permian and demand rising from new liquefied natural gas (LNG) export plants on the Gulf Coast, several companies are already looking to add new gas pipelines in the region, including units of Kinder Morgan Inc and Marathon Petroleum.
Energy Transfer's project could add around 1.5-2.0 billion cubic feet per day (bcfd) of transport capacity with only approximately 260 miles of new pipe.
