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Released October 22, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--After more than 18 months of pandemic-driven uncertainty, things are looking brighter for Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas). The pipeline giant reported a jump in volumes for third-quarter 2021 as demand grew at home and abroad, particularly for natural gas in and around the U.S. Gulf Coast area. Industrial Info is tracking more than $11.4 billion worth of Kinder Morgan projects in the U.S. and Canada, more than 90% of which is attributed to projects in the Gulf Coast states of Texas, Louisiana and Mississippi.
Click on the image at right for a graph detailing Kinder Morgan's active projects across the U.S. and Canada, by product type.
Kinder Morgan reported third-quarter net income of $495 million, up from $455 million in the third quarter of 2020. Revenues were reported to be $3.82 billion, a 31% increase from the same period last year. Chief Executive Officer Steve Kean said in this week's quarterly earnings-related conference call with analysts that the company had adjusted its capital-spending outlook for 2022 from between $2 billion and $3 billion, down to between $1 billion and $2 billion. Kean clarified that less than $1 billion would go toward expansion capital.
"This is a function of kind of what kind of activity there is out there," Kean said. "Some of the new origination did come in the renewable diesel area and the renewable natural gas area, but we continue to have 53% of our backlog for natural gas. And so we still think the $1 billion to $2 billion is about right."
Kean added that a lot of the growth comes from gas demand on the Texas and Louisiana Gulf Coast, with some players in the Permian Basin hinting at the need for another pipeline: "They don't need it right now, but their time frame on when it might be needed out of the Permian has moved up a bit. And so those discussions are very advanced." It is unclear if an increase in gas demand would revive hopes for Kinder Morgan's proposed Permian Pass Pipeline, which is designed to carry about 2 billion cubic feet per day of gas from the Permian Basin to the Texas Gulf Coast, but was delayed in first-quarter 2020 due to permitting issues and scaled-down activity from producers.
"On the Permian takeaway [capacity], what we had talked about before is the need being there in 2025," Kean said. "Based on some conversations with customers, its maybe moved up a year." He later added: "We'll be having commercial discussions and we'll see whether the real commitment demand is there." Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a detailed report on the Permian Pass project.
Kinder Morgan subsidiary Natural Gas Pipeline Company of America LLC's Gulf Coast Southbound Expansion Project is seeing more immediate results in connecting natural gas producers to export opportunities in the Gulf Coast area. The company is wrapping up much of the second phase, which began in early 2020, and is now seeking permits for the third phase of the project, which includes proposed modifications to Station 300 in Victoria, Texas; Station 303 in Lufkin, Texas; and Station 304 in Marshall, Texas. Each project will add equipment and upgrade the pipelines to expand capacity by 260 million standard cubic feet per day to the Southbound system.
Kinder Morgan's subsidiary holds a 50% ownership in Gulf Coast Southbound. Subscribers can learn more from Industrial Info's reports on the Station 300, Station 303 and Station 304 projects.
Among Kinder Morgan's other Gulf Coast projects is its $145 million Acadiana unit addition project in Eunice, Louisiana, which began partial service on October 1, with full in-service expected in the fourth quarter, ahead of schedule. The project adds 894 million standard cubic feet per day of capacity to serve Train 6 at Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Sabine Pass Liquefaction facility in Cameron Parish, Louisiana. Subscribers can learn more from Industrial Info's project report.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking more than 100 maintenance-related projects across the U.S. and Canada from Kinder Morgan. Subscribers to the GMI Project Database can click here for a list.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing Kinder Morgan's active projects across the U.S. and Canada, by product type.Kinder Morgan reported third-quarter net income of $495 million, up from $455 million in the third quarter of 2020. Revenues were reported to be $3.82 billion, a 31% increase from the same period last year. Chief Executive Officer Steve Kean said in this week's quarterly earnings-related conference call with analysts that the company had adjusted its capital-spending outlook for 2022 from between $2 billion and $3 billion, down to between $1 billion and $2 billion. Kean clarified that less than $1 billion would go toward expansion capital.
"This is a function of kind of what kind of activity there is out there," Kean said. "Some of the new origination did come in the renewable diesel area and the renewable natural gas area, but we continue to have 53% of our backlog for natural gas. And so we still think the $1 billion to $2 billion is about right."
Kean added that a lot of the growth comes from gas demand on the Texas and Louisiana Gulf Coast, with some players in the Permian Basin hinting at the need for another pipeline: "They don't need it right now, but their time frame on when it might be needed out of the Permian has moved up a bit. And so those discussions are very advanced." It is unclear if an increase in gas demand would revive hopes for Kinder Morgan's proposed Permian Pass Pipeline, which is designed to carry about 2 billion cubic feet per day of gas from the Permian Basin to the Texas Gulf Coast, but was delayed in first-quarter 2020 due to permitting issues and scaled-down activity from producers.
"On the Permian takeaway [capacity], what we had talked about before is the need being there in 2025," Kean said. "Based on some conversations with customers, its maybe moved up a year." He later added: "We'll be having commercial discussions and we'll see whether the real commitment demand is there." Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a detailed report on the Permian Pass project.
Kinder Morgan subsidiary Natural Gas Pipeline Company of America LLC's Gulf Coast Southbound Expansion Project is seeing more immediate results in connecting natural gas producers to export opportunities in the Gulf Coast area. The company is wrapping up much of the second phase, which began in early 2020, and is now seeking permits for the third phase of the project, which includes proposed modifications to Station 300 in Victoria, Texas; Station 303 in Lufkin, Texas; and Station 304 in Marshall, Texas. Each project will add equipment and upgrade the pipelines to expand capacity by 260 million standard cubic feet per day to the Southbound system.
Kinder Morgan's subsidiary holds a 50% ownership in Gulf Coast Southbound. Subscribers can learn more from Industrial Info's reports on the Station 300, Station 303 and Station 304 projects.
Among Kinder Morgan's other Gulf Coast projects is its $145 million Acadiana unit addition project in Eunice, Louisiana, which began partial service on October 1, with full in-service expected in the fourth quarter, ahead of schedule. The project adds 894 million standard cubic feet per day of capacity to serve Train 6 at Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Sabine Pass Liquefaction facility in Cameron Parish, Louisiana. Subscribers can learn more from Industrial Info's project report.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking more than 100 maintenance-related projects across the U.S. and Canada from Kinder Morgan. Subscribers to the GMI Project Database can click here for a list.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
