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Released April 24, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Once again, natural gas proved to be the breadwinner for Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), which saw its first-quarter earnings from its natural gas pipeline business grow more than 10%. These results, which were driven by a 42% increase in volumes from the Haynesville Shale and a 21% increase from the Eagle Ford, help to explain why investments in natural gas pipelines account for nearly all of Kinder Morgan's active projects, excluding its massive proposals for liquefied natural gas (LNG) export terminals. Industrial Info is tracking more than $12.3 billion worth of active Kinder Morgan projects across the U.S.
Click on the image at right for a graph detailing Kinder Morgan's active projects, by project type.
Kinder Morgan announced in December it would invest $2.1 billion in expansion projects and contributions to joint ventures in 2023. While its volume gains from the Haynesville and Eagle Ford came from pipeline systems fully in place, the company is tacking hopes for many of its upcoming expansion projects to the Permian Basin.
Kinder Morgan already is at work on an expansion of its Permian Highway Pipeline in Texas, which will increase natural gas deliveries from the Waha area of the Permian to multiple mainline connections and various markets along the U.S. Gulf Coast. The additions include new compressor stations in Fredericksburg, Houston and Coyanosa, and a new, five-mile pipeline loop from Reeves County to Pecos County. Each component is expected to finish construction toward the end of the year. Subscribers can read detailed reports on the Fredericksburg, Houston and Coyanosa stations and the pipeline loop.
"Our network is well positioned for expansion in those parts of the country where it is possible to build new infrastructure, the Gulf Coast primarily," said Steve Kean, the chief executive officer of Kinder Morgan, in a recent quarterly earnings-related conference call. "Our gas transportation and storage network is well-positioned in Texas and Louisiana, where over 90% of natural gas demand growth is expected to take place. This point is well demonstrated by the growth in natural gas projects in our backlog."
Accordingly, Kinder Morgan is proposing an expansion of its Gulf Coast Express pipeline, which proved to be a lifesaver for Permian producers when it was brought online in 2019 amid a stifling shortfall in takeaway capacity. The company is proposing a series of unit additions at compressor stations along the mainline, and already is performing modifications to segments of the system's Southbound portion. Subscribers can click here for a list of active projects related to the Gulf Coast Express.
In a question-and-answer session, Kean pointed to the booming market for LNG as a potential driver for further development for pipeline projects in the Permian.
"We've been talking with customers about a third pipe out of the [Permian] basin," Kean said. "Where that gets pointed ultimately depends on the market need and which LNG facility gets FID [final investment decision] next. But we have been having discussions on the supply side and the market side, trying to bridge the gap. And I think, ultimately, it comes down to timing from the market side, as well as commercializing an appropriate rate of return from our perspective."
Kinder Morgan's Terminals segment saw its first-quarter earnings jump about 7% amid higher rates at its bulk terminals, supported by some recently completed expansions. Among its proposed terminal projects are a pair of biodiesel capacity expansions in California, at its Colton South Terminal in Bloomington and its Bradshaw Refined Products Terminal in Sacramento. The company hopes to install higher-blend systems at both facilities to increase their biodiesel content from 5% to 20%. Subscribers to Industrial Info's GMI Oil & Gas Terminals Project Database can read detailed reports on the Colton South and Bradshaw projects.
Industrial Info also is tracking more than $127 million worth of tank inspections and upgrades at Kinder Morgan's terminals, with kickoff dates ranging over the next three years. Subscribers can click here for a full list of reports for terminal projects from Kinder Morgan, and click here for a full list of related plant profiles.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Kinder Morgan.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Kinder Morgan's active projects, by project type.Kinder Morgan announced in December it would invest $2.1 billion in expansion projects and contributions to joint ventures in 2023. While its volume gains from the Haynesville and Eagle Ford came from pipeline systems fully in place, the company is tacking hopes for many of its upcoming expansion projects to the Permian Basin.
Kinder Morgan already is at work on an expansion of its Permian Highway Pipeline in Texas, which will increase natural gas deliveries from the Waha area of the Permian to multiple mainline connections and various markets along the U.S. Gulf Coast. The additions include new compressor stations in Fredericksburg, Houston and Coyanosa, and a new, five-mile pipeline loop from Reeves County to Pecos County. Each component is expected to finish construction toward the end of the year. Subscribers can read detailed reports on the Fredericksburg, Houston and Coyanosa stations and the pipeline loop.
"Our network is well positioned for expansion in those parts of the country where it is possible to build new infrastructure, the Gulf Coast primarily," said Steve Kean, the chief executive officer of Kinder Morgan, in a recent quarterly earnings-related conference call. "Our gas transportation and storage network is well-positioned in Texas and Louisiana, where over 90% of natural gas demand growth is expected to take place. This point is well demonstrated by the growth in natural gas projects in our backlog."
Accordingly, Kinder Morgan is proposing an expansion of its Gulf Coast Express pipeline, which proved to be a lifesaver for Permian producers when it was brought online in 2019 amid a stifling shortfall in takeaway capacity. The company is proposing a series of unit additions at compressor stations along the mainline, and already is performing modifications to segments of the system's Southbound portion. Subscribers can click here for a list of active projects related to the Gulf Coast Express.
In a question-and-answer session, Kean pointed to the booming market for LNG as a potential driver for further development for pipeline projects in the Permian.
"We've been talking with customers about a third pipe out of the [Permian] basin," Kean said. "Where that gets pointed ultimately depends on the market need and which LNG facility gets FID [final investment decision] next. But we have been having discussions on the supply side and the market side, trying to bridge the gap. And I think, ultimately, it comes down to timing from the market side, as well as commercializing an appropriate rate of return from our perspective."
Kinder Morgan's Terminals segment saw its first-quarter earnings jump about 7% amid higher rates at its bulk terminals, supported by some recently completed expansions. Among its proposed terminal projects are a pair of biodiesel capacity expansions in California, at its Colton South Terminal in Bloomington and its Bradshaw Refined Products Terminal in Sacramento. The company hopes to install higher-blend systems at both facilities to increase their biodiesel content from 5% to 20%. Subscribers to Industrial Info's GMI Oil & Gas Terminals Project Database can read detailed reports on the Colton South and Bradshaw projects.
Industrial Info also is tracking more than $127 million worth of tank inspections and upgrades at Kinder Morgan's terminals, with kickoff dates ranging over the next three years. Subscribers can click here for a full list of reports for terminal projects from Kinder Morgan, and click here for a full list of related plant profiles.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Kinder Morgan.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
