Kinetik has taken final investment decision on the first phase of its ECCC Pipeline expansion, increased planned Kings Landing II capacity to 380 MMcf/d and advanced additional Delaware Basin gathering, treating, processing and power projects.
Published by Allstream Insiders
Allstream Insiders Summary
Kinetik Holdings has taken final investment decision on Phase 1 of its ECCC Pipeline expansion and increased the planned capacity of its Kings Landing II, or KLII, natural-gas processing project by more than 25% to 380 MMcf/d.
According to Kinetik’s November 4 results announcement, Phase 1 of the ECCC expansion is designed to increase pipeline throughput capacity by roughly 50% to approximately 225 MMcf/d. The company said right-of-way acquisition was underway, with pipeline procurement and construction on a partial loop expected to begin in early 2027 and in-service targeted for mid-2027.
Kinetik said KLII remains on track for a mid-2028 in-service date, with expected capital cost unchanged at approximately $260 million. The company also reported progress on acid-gas injection and sour-gas conversion work at Kings Landing, a further processing expansion that has not yet reached FID, and the Diamond Volt behind-the-meter power project.
The release identifies a substantial set of development activities, but not every item is equally advanced. The ECCC Phase 1 expansion has reached FID; KLII is under development with an announced cost and schedule; other processing, treating and power projects remain at varying stages of engineering, procurement or construction.
Kinetik project update at a glance
| Project or activity | Company-reported detail |
|---|---|
| Kings Landing II | Planned processing capacity increased to 380 MMcf/d; capital cost remains approximately $260 million; mid-2028 in-service target |
| ECCC Pipeline Phase 1 | FID reached; throughput capacity expected to rise roughly 50% to approximately 225 MMcf/d; early-2027 construction start and mid-2027 in-service target |
| Kings Landing AGI and sour-gas conversion | AGI well reached total depth and acid-gas compression equipment was delivered; completion expected by year-end |
| Next processing expansion beyond KLII | Long-lead residue compression ordered; front-end amine treating and a 400 MMcf/d cryogenic unit are in procurement; location and FID not finalized |
| Pecos Bend and other processing complexes | Treating and processing expansion at Pecos Bend, plus modifications at East Toyah, Pecos and Diamond Cryo |
| Diamond Volt | Behind-the-meter power-generation project at Diamond Cryo; construction activity continuing; mid-2027 in-service target |
| New gathering and processing agreements | More than 30,000 gross acres dedicated in New Mexico and Texas since early August; first flow expected in the second and third quarters of 2027 |
ECCC Pipeline expansion has reached FID
Kinetik said it reached final investment decision on the first phase of the ECCC Pipeline expansion. The company expects the work to increase throughput capacity by roughly 50% to approximately 225 MMcf/d, providing additional access from Delaware North to Delaware South processing for its customers.
According to the announcement, right-of-way acquisition was underway during the third quarter. Pipeline procurement and construction activity on the partial looping project are expected to begin in early 2027, with an in-service target of mid-2027.
The company did not disclose the project’s capital budget, pipeline mileage, diameter, route, EPC contractor, line-pipe supplier, crossing scope or detailed construction sequence. Those details would be necessary to identify specific contracting or supply opportunities.
Kings Landing II grows to 380 MMcf/d
In September, Kinetik increased KLII’s planned processing capacity by more than 25% to 380 MMcf/d. The company said the expected capital cost remains approximately $260 million, citing critical equipment components that were below budget.
Kinetik said the processing project remains on track for a mid-2028 in-service date. The release does not name the cryogenic-processing technology provider, engineering firm, construction contractor, compressor supplier or other equipment vendors associated with KLII.
The company separately reported that the acid-gas injection and sour-gas conversion project at Kings Landing progressed during the quarter. Kinetik said the AGI well reached total depth and acid-gas compression equipment was delivered on site, with completion anticipated by year-end. It did not provide a project budget or name the drilling, compression or construction providers.
New customer agreements support future capacity needs
Kinetik said it executed new and amended low-pressure gathering and processing agreements in New Mexico and Texas, with more than 30,000 gross acres dedicated since the beginning of August. The company expects first flow from the agreements in the second and third quarters of 2027.
One agreement includes a firm minimum-volume commitment, according to Kinetik. The company said it is procuring additional compression equipment to accommodate expected producer-volume growth.
The new agreements also support a future processing expansion beyond KLII. Kinetik has ordered long-lead residue-compression equipment and said procurement is underway for front-end amine treating and a 400 MMcf/d cryogenic unit. The company has not finalized whether that expansion will be in Texas or New Mexico, and it has not announced final investment decision, cost, site, schedule or contractor awards.
Treating, processing and behind-the-meter power work continues
With increasing carbon-dioxide concentrations from Loving and Lea counties, Kinetik said it is expanding front-end amine-treating capacity and overall processing capability at Pecos Bend. It is also making plant modifications intended to improve processing capacity and recoveries at the East Toyah, Pecos and Diamond Cryo complexes.
The company did not state the size, capital cost or completion date of those facility modifications. It also did not identify detailed equipment or service providers.
Kinetik said construction activity continued at Diamond Volt, its behind-the-meter power-generation project at Diamond Cryo, with an expected mid-2027 in-service date. The announcement does not disclose Diamond Volt’s generation capacity, fuel arrangement, equipment supplier, contractor or cost.
Residue-gas market access extends beyond the asset buildout
Kinetik also said it committed to additional transport capacity on a new long-haul residue-gas pipeline between the Waha Hub and the Gulf Coast, with the agreement expected to begin in 2029. In a separate agreement, the company secured firm access to additional Gulf Coast residue-gas pricing beginning in 2027.
The company did not identify the long-haul pipeline, capacity volume, project owner, route or commercial terms. The disclosure supports Kinetik’s stated market-access strategy, but not a conclusion that Kinetik is constructing that downstream pipeline.
What the announced work could involve for the industrial market
Allstream perspective: The ECCC partial loop, processing expansions, treating upgrades and compression additions are the kinds of midstream developments that can require engineering and design; line pipe, valves, fittings, meters and regulators; compression packages, amine and treating systems, cryogenic and process equipment; pumps, motors, electrical and control systems; civil work, welding, coatings, insulation and scaffolding; right-of-way, land, survey and environmental services; and construction, inspection, testing and commissioning support.
These are potential work categories for projects of this type, not named Kinetik awards. The November release confirms FID only for ECCC Phase 1 and identifies progress on several other initiatives, while leaving many project-level commercial details undisclosed.
Allstream perspective: FID and capacity additions give the program a defined near-term center
Allstream perspective: Kinetik’s ECCC Phase 1 FID provides the clearest near-term construction milestone in the update, with early-2027 procurement and construction activity and a mid-2027 target. KLII’s higher 380 MMcf/d capacity and unchanged $260 million estimate establish another significant, though later-dated, Delaware Basin processing investment.
The future 400 MMcf/d processing unit, Pecos Bend treating expansion and Diamond Volt project broaden the capital picture, but their scope and procurement readiness vary. Contractors and suppliers should track subsequent FIDs, site decisions, permits, equipment orders, engineering awards and construction packages rather than treating Kinetik’s full growth portfolio as awarded work.
