(P&GJ) — Producers Midstream II, LLC has launched a binding open season to gauge shipper demand for firm transportation on its proposed Palo Duro (PD) Pipeline, a 275-mile (about 443-km) natural-gas line that will link residue markets at Waha in the Permian Basin with Mid-Continent outlets in the Anadarko Basin.

The project will repurpose existing 16-inch pipe running from Nolan County, Texas, to Wheeler County, Texas, and lease capacity on the company’s gathering header into western Oklahoma. Because no new pipe construction is planned, the company will seek interstate authority from the Federal Energy Regulatory Commission under Section 7(c) of the Natural Gas Act, aiming for a first-quarter 2026 in-service date.

“This Open Season marks a key milestone for the Palo Duro Pipeline and underscores our commitment to delivering scalable, market-responsive infrastructure,” said Matt Flory, Producers Midstream’s chief executive officer. “The pipeline's unique interconnectivity and strategic positioning creates a much-needed additional outlet for constrained Permian gas, while also supporting the rapid growth of AI-driven power solutions and other emerging sources of demand.”

The north–south line will interconnect with up to seven interstate systems—Northern Natural Gas, Transwestern, NGPL, ANR, Panhandle Eastern, Enable Gas Transmission and Southern Star—giving shippers multiple downstream options. Producers Midstream said the route is designed to ease Permian takeaway bottlenecks while meeting rising industrial, petrochemical, power-generation and behind-the-meter loads.

The open season runs June 30–July 14. Full bidding procedures and technical details are available at Producers Midstream’s website. Interested parties can contact the company’s marketing team at marketing@producersmidstream.com or 214-238-5740.

Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.