Kinder Morgan to invest $4.7 billion in two gas pipeline projects as demand surges
KMI•Kinder Morgan approved $4.7 billion for two natural gas pipeline joint ventures, lifting its project backlog to $14.4 billion, including a record $13.2 billion in natural gas projects. It also reported adjusted third-quarter earnings of 35 cents per share, above analysts’ 32-cent estimate.
1. Pipeline investments approved
Kinder Morgan said it would invest about $3.1 billion in Southern Natural Gas’ Southeast Connector project and $1.6 billion in NGPL’s Permian Link project. The approvals lifted the company’s project backlog to $14.4 billion, including a record $13.2 billion in natural gas projects.
2. Capacity and timelines
Southeast Connector is designed to transport up to 2.6 billion cubic feet of gas per day through about 470 miles of new pipeline to markets in the US Southeast. Permian Link is designed to move roughly 2.8 billion cubic feet per day from the Permian Basin to NGPL’s Midcontinent system through about 434 miles of new pipeline. Permian Link is expected to enter service in the third quarter of 2030, and Southeast Connector is expected to start in phases beginning in the fourth quarter of 2030.
3. Quarterly earnings
Kinder Morgan posted adjusted profit of 35 cents per share for the three months ended September 30, compared with analysts’ estimate of 32 cents per share. The company said Permian Link would supply gas to power providers serving an investment-grade hyperscale data-center customer; executives said the project had drawn interest from customers beyond that anchor customer.
