Kinetik Expands Kings Landing II Plant to 300 MMcfd, Targeting 2028 Completion
According to Permian Basin Oil and Gas Magazine, Midland-based Kinetik Holdings has committed to developing its Kings Landing II natural gas processing plant at an expanded capacity of 300 million cubic feet per day (mmcfd), up from the originally planned 200 mmcfd, at an expected cost of $260 million.
Market Impact
The Kings Landing II facility is located at Kinetik’s Kings Landing complex in Eddy County, New Mexico. President and CEO Jamie Welch announced the decision on May 19, saying it “reflects the strength of our existing acreage footprint, the accelerated pace of customer development plans, and sustained commercial momentum.”
Completion is targeted for the second half of 2028. At that point, Kinetik’s total system capacity is projected to exceed 2.7 billion cubic feet per day, including 700 mmcfd of sour gas processing capacity across Eddy and Lea counties. Welch also noted the plant’s design preserves the option to add a third processing facility at Kings Landing with an additional 200 mmcfd of capacity, signaling further growth potential beyond the current project.
What It Means for Subcontractors
A $260 million processing plant build-out in the Delaware Basin is a meaningful opportunity for field service companies active in southeastern New Mexico. Here’s what to watch:
- Construction timeline: With a second-half 2028 target, procurement and early-phase construction work is likely to ramp up through 2026 and 2027, creating a multi-year window for subcontract opportunities in civil, mechanical, piping, and electrical disciplines.
- Sour gas requirements: The focus on sour gas processing capacity in Eddy and Lea counties means specialized contractors with H2S safety credentials and sour service experience will be in demand.
- Future expansion optionality: The design deliberately accommodates a third plant at Kings Landing. Subcontractors who establish a working relationship on Kings Landing II could be positioned for follow-on work if that expansion proceeds.
- Geographic concentration: Eddy County is a hub of Delaware Basin activity. Companies already mobilized in the region, near Carlsbad or Loving, are best positioned to compete on cost and response time.
