Kinetik Approves $260M FID for 300 mcf/d Kings Landing II Plant
Kinetik Holdings approved a $260 million FID on Kings Landing II, adding 300 mcf/d of processing capacity—a 50% boost over initial design. Set to start late 2028, it will raise total capacity above 2.7 bcf/d and underwrite the high end of Kinetik’s $450–510 million 2026 capex guidance.
1. Final Investment Decision on Kings Landing II
Kinetik approved the final investment decision on the Kings Landing II project with a $260 million commitment to expand its New Mexico gas processing facilities. This expansion adds 300 mcf/d of throughput capacity, representing a 50% increase over the initially planned 200 mcf/d module.
2. Project Timeline and Capacity Growth
Construction is scheduled to complete in the latter half of 2028, at which point Kinetik’s combined processing capacity will exceed 2.7 bcf/d. The total includes over 700 mcf/d dedicated to sour gas processing in Eddy and Lea Counties.
3. Impact on Capital Expenditure Guidance
The Kings Landing II capex pushes Kinetik toward the upper end of its $450–510 million 2026 spending guidance, reflecting a disciplined approach to growth investments and customer-driven development.
4. Future Expansion and Strategic Positioning
The KLII design preserves an option to add a third 200 mcf/d plant at the Kings Landing complex, reinforcing Kinetik’s integrated midstream presence in the Permian-to-Gulf Coast corridor and supporting long-term commercial momentum.