Federal Judge Hands Permian Highway Pipeline a Win Against Sierra Club

September 3, 2020
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The Sierra Club’s request to stop construction of the Permian Highway Pipeline (PHP) was denied by a federal judge.

“Austin-based district court Judge Robert Pitman said Aug. 28, noting that in seeking a temporary restraining order, the environmental group failed to establish a definitive threat of future harm.”

Engineering News-Record (ENR), 8/30/2020

Article Summary

  • Federal judge denies environmentalist’s group request to halt construction of Kinder Morgan’s 429-mile Permian Highway pipeline (PHP)
  • District judge Robert Pitman said on August 28, noting that in seeking a temporary restraining order, the environmental group failed to establish a definitive threat of future harm
  • Kinder Morgan said the project is to be completed in 2021 with current work 72% completed and trenching 87% finished in July
  • The ruling noted that Kinder Morgan opted to proceed under its federal Nationwide Permit 12 to construct the pipeline at 330 water crossing without notifying the Army Corps because the crossings did not trigger an of the permit’s general conditions

AEGIS View

Kinder Morgan’s PHP is planned to transport 2.1 bcf/d of natural gas to market from West Texas to the Gulf Coast and Mexico, and is fully subscribed, according to the company. The pipeline is an important conduit for producers exposed to Waha basis. The Permian basin produces an abundance of associated gas that in the past has exceeded available takeaway capacity which has led to flaring and deep price discounts for producers.

We continue to monitor oil, gas, NGLs, regional markets, jet fuel, and interest rates for hedging opportunities. To learn more and see AEGIS opinion and recommendations, go to AEGIS View publications, or contact info@aegis-energy.com. Like what you see? Share this article with the button on the bottom right of your desktop. Market questions or comments? Contact us at view@aegis-energy.com.

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