Home / Business and Economy / Kinder Morgan Bets Big on Gas: $4.7B Pipeline Push
Kinder Morgan Bets Big on Gas: $4.7B Pipeline Push
22 Oct
Summary
- Kinder Morgan approved $4.7 billion for two major natural gas pipelines.
- Investments aim to meet rising demand from power plants and data centers.
- The company's natural gas project backlog reached a record $13.2 billion.
US pipeline operator Kinder Morgan has committed $4.7 billion to two major natural gas pipeline joint ventures. These investments underscore the increasing demand for natural gas, particularly from power plants, data centers, and liquefied natural gas (LNG) exporters. The company's natural gas project backlog has surged to a record $13.2 billion as a result.
Kinder Morgan will allocate approximately $3.1 billion to the Southeast Connector project and $1.6 billion to the Permian Link project. The Southeast Connector is slated to move up to 2.6 billion cubic feet per day (Bcf/d) across 470 miles, serving growing markets in the US Southeast. The Permian Link will transport about 2.8 Bcf/d from the Permian Basin in Texas to the Midcontinent system via 434 miles of new pipeline.
The Permian Link is designed to supply gas to power providers for a hyperscale data-center customer. Both projects are anticipated to enter service in phases, beginning in late 2030. These developments contributed to Kinder Morgan exceeding quarterly profit estimates, with shares rising in extended trading.
