Natural gas pipeline to extend from Permian Basin to Gulf Coast.

Kinder Morgan Texas Pipeline LLC, DCP Midstream, LP and an affiliate of Targa Resources Corp.

have made a final investment decision to proceed with the Gulf Coast Express (GCX) Pipeline Project, Kinder Morgan announced Thursday.

“We are excited to be moving forward on this much-needed infrastructure project, with construction planned to commence in the first quarter of 2018,” stated Kinder Morgan Natural Gas Midstream President Duane Kokinda. “We’re very pleased to have secured the commitments needed for all parties to proceed.”

The will comprise 82 miles of 36-inch pipeline and 365 miles of 42-inch pipeline, Kinder Morgan stated. The BOP Blow Out Preventer repair company gulf coast said the conduit, which will transport up to 1.92 billion cubic feet per day (Bcf/d) of natural gas, will originate at the Waha Hub near Coyanosa, Texas, in the Permian Basin and terminate near Agua Dulce, Texas. In addition, the project will include an approximately 50-mile Midland Lateral portion.

Kinder Morgan also pointed out that it will build, operate and own a 50-percent interest in GCX while DCP and Targa will each hold a 25-percent equity interest in the project. Moreover, shipper Apache Corp. has an option to purchase up to a 15-percent equity stake from Kinder Morgan.

According to Kinder Morgan, approximately 85 percent of the project capacity is subscribed and committed under long-term binding transportation agreements. Kokinda stated the remaining available capacity may be offered as part of a binding open season in January 2018.

Kinder Morgan said it expects GCX to be in service in October 2019, pending the receipt of necessary regulatory approvals.