Kinetik Holdings Inc. announced it has reached final investment decision on Kings Landing II (KLII), a 300 million cubic feet per day (MMft3/d) natural gas processing plant at its existing Kings Landing complex in New Mexico. KLII is a 50% increase from the originally contemplated 200 MMft3/d capacity expansion.  

“We remain excited by the continued growth and robust development activity in the Northern Delaware Basin,” said Jamie Welch, President & CEO of Kinetik. “Our decision to proceed with KLII at this expanded scale is a direct response to this activity. Today’s announcement reflects the strength of our existing acreage footprint, the accelerated pace of customer development plans, and sustained commercial momentum. Importantly, the construction and design of KLII preserves the ability to add a third 200 MMft3/d processing plant at the Kings Landing complex.” 

Upon completion of KLII in the second half of 2028, Kinetik’s system-wide processing capacity will exceed 2.7 billion cubic feet per day, with more than 700 MMft3/d of sour gas processing capacity in northern Eddy and Lea Counties. 

KLII is estimated to cost approximately $260 million. With KLII’s increased processing capacity, Kinetik now expects to be at the top end of its 2026 Capital Expenditures1 Guidance range of $450 million to $510 million.