The 300 MMcf/d Kings Landing II expansion leads a Delaware Basin program that also includes the ECCC Pipeline, a Kings Landing acid-gas project, Diamond Volt and early equipment procurement for another processing plant.

Published by Allstream Insiders.

Allstream Insiders Summary

Kinetik Holdings has reached final investment decision on Kings Landing II, a 300 million cubic feet per day sour-gas processing expansion carrying approximately $260 million of expected total capital and a targeted mid-2028 completion.

Kinetik also increased its full-year 2026 capital-expenditure plan to approximately $560 million, including maintenance. The update reflects Kings Landing II, accelerated customer development, operating-system optimization, long-lead equipment for another cryogenic processing expansion and right-of-way procurement for a potential expansion of the ECCC Pipeline.

The company’s August 5, 2026 project update also identifies several active construction and development milestones:

• The ECCC Pipeline is in service, creating a north-to-south connection between Eddy and Culberson counties across the western portion of Kinetik’s Delaware Basin system.
• Construction and drilling are underway on the Kings Landing acid gas injection and sour conversion project, with service expected by year-end 2026.
• Construction is advancing on Diamond Volt, a 40 MW behind-the-meter generation project at the Diamond Cryo Complex, with service anticipated in the second quarter of 2027.
• Kinetik’s board authorized procurement of long-lead equipment for a processing-capacity expansion beyond Kings Landing II.

Kinetik Project and Capital Tracker

Kings Landing II Adds 300 MMcf/d of Sour-Gas Processing

Kinetik reached FID on Kings Landing II in May 2026 and expects to invest approximately $260 million in the 300 MMcf/d processing expansion. The company now expects the project to be completed in mid-2028, earlier than its previous schedule.

Kings Landing II is part of Kinetik’s Delaware North system. Upon completion, Kinetik expects Delaware North sour-gas processing capacity to exceed 700 MMcf/d and total system processing capacity to reach approximately 2.7 Bcf/d in 2028.

Kinetik said it has purchased the project’s processing, amine and residue-compression equipment. That distinction is important for contractors and manufacturers evaluating the project: the principal equipment packages identified by the company are already procured.

From an industrial supply-chain perspective, Allstream observes that the remaining execution phase could involve site work, structural and mechanical construction, piping, electrical systems, automation, equipment integration, testing and commissioning. These are potential work categories associated with the announced project stage, not Kinetik-announced awards, bid packages or procurement dates.

ECCC Pipeline Enters Service as Kinetik Begins Expansion Right-of-Way Work

Kinetik has placed the ECCC Pipeline in service and started right-of-way procurement for an anticipated expansion in 2027. The large-diameter, high-pressure pipeline connects Kinetik’s Delaware North and Delaware South systems across the western Delaware Basin.

The operating pipeline establishes a north-to-south route between Eddy and Culberson counties. Kinetik expects rich-gas volumes on the connection to increase as Kings Landing I moves toward full utilization.

Kinetik’s earnings presentation describes ECCC as expandable to approximately 300 MMcf/d of throughput capacity to support customer development in New Mexico. The company has tied the possible 2027 expansion to its customer-growth outlook and has identified right-of-way procurement as the current step.

Allstream observes that this stage could involve route development, land and easement work, survey activity, engineering, environmental review and early material planning. The announced near-term activity is right-of-way procurement; a completed expansion or separate construction award should not be inferred from that milestone.

Kings Landing Acid-Gas Project Targets Year-End 2026 Service

Construction and drilling operations are underway on Kinetik’s Kings Landing acid gas injection well and sour conversion project. Kinetik said the project received its required permits earlier in 2026 and remains on schedule for service by year-end.

The project supports sour-gas handling at the Kings Landing complex as Kinetik expands Delaware North processing capacity. Its active execution stage could involve well services, compression, piping, mechanical systems, monitoring, controls and commissioning. Those categories are Allstream analysis based on the project description and should not be interpreted as announced solicitations.

Diamond Volt Advances Toward Second-Quarter 2027 Startup

Kinetik is advancing construction of Diamond Volt, a 40 MW behind-the-meter power-generation project at the Diamond Cryo Complex. The company anticipates placing the project in service during the second quarter of 2027.

The project is intended to provide on-site power at an existing processing complex. Allstream observes that a project of this type could require generation equipment, electrical and control systems, site integration, interconnection work, construction support, testing and commissioning. Kinetik has not identified those observations as open contract packages.

Kinetik’s presentation also identifies pipeline connections intended to supply residue natural gas to two separately developed West Texas power projects: the 1,350 MW CPV Basin Ranch Energy Center in Ward County and the 452 MW Pecos Power Plant in Reeves County. The presentation describes Kinetik’s role as providing pipeline connections and residue-gas supply rather than developing or owning the generating facilities.

Kinetik Authorizes Long-Lead Equipment for Its Next Processing Expansion

Kinetik’s board has authorized the purchase of long-lead equipment for another processing-capacity expansion beyond Kings Landing II. The company’s presentation refers to the concept as “Next Cryo” and says it is evaluating a future plant in either New Mexico or Texas.

The authorization allows Kinetik to begin positioning equipment supply ahead of a full project decision as customer development accelerates. It should be interpreted as an equipment-procurement step, not as a completed FID for another processing plant.

Approximately $560 Million Capital Plan Supports Projects and System Growth

Kinetik raised its 2026 capital-expenditure guidance from a previous range of $450 million to $510 million to approximately $560 million, including maintenance. The company identified five principal drivers of the update:

• Kings Landing II FID;
• customer development moving into late 2026 and early 2027;
• optimization projects across Kinetik’s operations;
• long-lead procurement for another cryogenic processing plant; and
• right-of-way procurement for an ECCC Pipeline expansion.

Kinetik’s presentation allocates the 2026 capital plan by geography and work category:

The geographic percentages and work-category percentages are two separate views of the same companywide capital plan. They are not individual project budgets and should not be converted into spending estimates for Kings Landing II, ECCC, Diamond Volt or another named project.

Kinetik defines its capital guidance net of contributions in aid of construction, asset-disposal proceeds and returns of invested capital from unconsolidated affiliates.

Allstream Perspective

Kinetik’s update separates its Delaware Basin program into three distinct stages. Kings Landing II is sanctioned and moving through equipment procurement toward construction. The ECCC Pipeline and Kings Landing acid-gas project have entered active operating or construction milestones. Diamond Volt remains under construction, while the next cryogenic plant is at an earlier equipment-procurement and evaluation stage.

For industrial contractors and manufacturers, Kings Landing II and the year-end Kings Landing acid-gas schedule represent the clearest company-described execution programs. ECCC’s right-of-way work provides an early indicator of a possible 2027 pipeline expansion, but later engineering, material and construction scopes remain dependent on further project advancement.

The approximately $560 million capital plan confirms that Kinetik is directing additional spending toward processing, facilities, field infrastructure and trunklines. The company’s allocation data provides useful market scale, but only the approximately $260 million Kings Landing II figure is identified as a named-project capital value in the August 5 materials.