
Palo Duro Pipeline Has Plans in Store, Starting with an Open Season
The summer season is upon us and so, too, is a binding Open Season to gauge shipper demand for the proposed Palo Duro pipeline project, packed with a fistful of enhanced access and transportation opportunities from Texas to Okla. Dallas-based Producers Midstream II, a portfolio company of Tailwater Capital, launched the Open Season June 30 to end July 14.
Reese Energy Consulting is following the latest from Producers Midstream, whose 275-mile, 80,000 MMBtu/d Palo Duro natural gas pipeline wants to say “Hello, lover” to a new pathway that frees more Permian constrained gas, offers more pipeline interconnects, links gas to more outlets in the Anadarko Basin, and positions it as a strategic backbone for the growing demand for natural gas industrial, Petrochem, power generation, and AI-related demands. Now come the interesting details.
The Palo Duro project requires no new pipe construction but will instead repurpose its existing infrastructure to create a more strategic path to flow gas, along with expanding its multiple interstate pipeline connections that offer shippers more access to downstream markets.