U.S. OKs Kinder Morgan Request to Start Texas Lockridge Pipeline Construction

(Reuters) — The U.S. Federal Energy Regulatory Commission (FERC) on Wednesday approved Kinder Morgan Inc’s Dec. 13 request to start construction of its proposed Lockridge natural gas pipeline in the Permian basin in West Texas.  The Lockridge project is one of several under development or construction designed to remove gas from the Permian basin in West Texas and eastern New Mexico where pipeline capacity has not kept up with the amount of gas associated with record oil production in the region. That lack of pipeline space has prompted some drillers to flare record amounts of gas in the Permian and caused prices at the region’s Waha hub to remain well below the U.S. Henry Hub benchmark

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