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Released April 19, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), which handles about 40% of U.S. natural gas throughput, expects the rising demand for liquefied natural gas (LNG) and data-driven technology, such as AI, will result in enormous growth in the natural gas midstream sector in the coming years. The company is developing and overhauling systems in some of the nation's biggest energy hotspots, including the Gulf Coast. Industrial Info is tracking more than $12 billion in active and planned projects from Kinder Morgan.
Click on the image at right for a graph detailing Kinder Morgan's active and planned projects, by industrial sector.
In a quarterly earnings-related conference call earlier this week, Executive Chairman Rich Kinder said U.S. utilities are forecasting heavy growth in electricity demand in the coming years, with at least one utility in the Southeastern U.S. expecting winter demand to increase 37% by 2031. The Southeast is home to more than $8.6 billion worth of the Kinder Morgan projects tracked by Industrial Info, including a proposed, 32-mile expansion of the Tennessee Gas Pipeline system.
Kinder Morgan is planning the expansion to transport up to 245 million of natural gas from an intersection with Line 100 in Dickson County, Tennessee, to the Tennessee Valley Authority's (TVA) (Chattanooga, Tennessee) Cumberland Power Plant in Cumberland City, Tennessee, following the TVA's decision to replace the coal-fired power plant with natural gas-fired, combined-cycle (NGCC) generation. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can learn more from a detailed project report on the line expansion and a profile of the Cumberland Power Plant.
Much of the growth in the Southeast and other regions of the U.S. is expected to come from the growth of data centers, particularly those for AI development. "One recent survey showed a projected increase in electric demand to power data centers of 13% to 15% compounded annually through 2030," Kinder said in the conference call. "Put another way, data centers used about 2.5% of U.S. electricity in 2022 and are projected to use about 20% by 2030. AI demand alone is projected at about 15% of demand in 2030. If just 40% of that AI demand is served by natural gas that would result in incremental demand of 7 billion to 10 billion cubic feet a day."
For more information on the influence of data centers on electricity demand and capital expenditures at utilities across the U.S., see April 16, 2024 - Data Center Construction Propels Electric Load Growth and Utility Capex.
Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) and Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) are planning to construct data centers in Wyoming, where Kinder Morgan subsidiary Wyoming Interstate Company (WIC) is preparing for its $23.3 million Cheyenne-to-Piceance Expansion project to add 180 million standard cubic feet per day of capacity on its east-to-west system, running from the Cheyenne Hub to a junction with the Piceance lateral in Sweetwater County, Wyoming.
The project involves a series of modifications to Natural Gas Compressor Station 5680 near Wamsutter, Wyoming, including the replacement of an older compressor with a more efficient model. The Wamsutter station sits near the Piceance lateral junction. Kinder Morgan expects to begin service in May 2025. Subscribers can learn more from a detailed project report.
Kinder Morgan executives also were upbeat about new opportunities to develop their backlog within the next year, particularly in the Permian Basin and Eagle Ford Shale areas of Texas, where calls for takeaway capacity are getting louder. The company started construction in January on the $250 million Tejas Eagle Ford Expansion Project, which runs 67 miles from a compressor station in Freer, Texas, to the existing Tejas pipeline system near Sinton, Texas. The new line is expected to transport up to 2 billion cubic feet per day of natural gas.
Construction is set to wrap up toward the end of the year. Tom Dender, the president of Kinder Morgan's Natural Gas Midstream business, said the Tejas project "will be a critical supply link for the impending growth being discussed with power generators, industrial customers and LNG exporters along our Texas intrastate pipeline network." Subscribers can learn more from a detailed project report.
Earlier this year, Kinder Morgan asked the U.S. Federal Energy Regulatory Commission (FERC) for a five-year extension, up to July 2029, for its proposed Gulf LNG Liquefaction Terminal in Pascagoula, Mississippi, before it is required to begin shipping LNG. FERC authorized the construction and operation of Gulf LNG in July 2019, with an original shipping deadline of July 2024. The project is designed to liquefy and export 5.75 million metric tons per year of LNG. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases 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 and planned 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 and planned projects, by industrial sector.In a quarterly earnings-related conference call earlier this week, Executive Chairman Rich Kinder said U.S. utilities are forecasting heavy growth in electricity demand in the coming years, with at least one utility in the Southeastern U.S. expecting winter demand to increase 37% by 2031. The Southeast is home to more than $8.6 billion worth of the Kinder Morgan projects tracked by Industrial Info, including a proposed, 32-mile expansion of the Tennessee Gas Pipeline system.
Kinder Morgan is planning the expansion to transport up to 245 million of natural gas from an intersection with Line 100 in Dickson County, Tennessee, to the Tennessee Valley Authority's (TVA) (Chattanooga, Tennessee) Cumberland Power Plant in Cumberland City, Tennessee, following the TVA's decision to replace the coal-fired power plant with natural gas-fired, combined-cycle (NGCC) generation. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can learn more from a detailed project report on the line expansion and a profile of the Cumberland Power Plant.
Much of the growth in the Southeast and other regions of the U.S. is expected to come from the growth of data centers, particularly those for AI development. "One recent survey showed a projected increase in electric demand to power data centers of 13% to 15% compounded annually through 2030," Kinder said in the conference call. "Put another way, data centers used about 2.5% of U.S. electricity in 2022 and are projected to use about 20% by 2030. AI demand alone is projected at about 15% of demand in 2030. If just 40% of that AI demand is served by natural gas that would result in incremental demand of 7 billion to 10 billion cubic feet a day."
For more information on the influence of data centers on electricity demand and capital expenditures at utilities across the U.S., see April 16, 2024 - Data Center Construction Propels Electric Load Growth and Utility Capex.
Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) and Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) are planning to construct data centers in Wyoming, where Kinder Morgan subsidiary Wyoming Interstate Company (WIC) is preparing for its $23.3 million Cheyenne-to-Piceance Expansion project to add 180 million standard cubic feet per day of capacity on its east-to-west system, running from the Cheyenne Hub to a junction with the Piceance lateral in Sweetwater County, Wyoming.
The project involves a series of modifications to Natural Gas Compressor Station 5680 near Wamsutter, Wyoming, including the replacement of an older compressor with a more efficient model. The Wamsutter station sits near the Piceance lateral junction. Kinder Morgan expects to begin service in May 2025. Subscribers can learn more from a detailed project report.
Kinder Morgan executives also were upbeat about new opportunities to develop their backlog within the next year, particularly in the Permian Basin and Eagle Ford Shale areas of Texas, where calls for takeaway capacity are getting louder. The company started construction in January on the $250 million Tejas Eagle Ford Expansion Project, which runs 67 miles from a compressor station in Freer, Texas, to the existing Tejas pipeline system near Sinton, Texas. The new line is expected to transport up to 2 billion cubic feet per day of natural gas.
Construction is set to wrap up toward the end of the year. Tom Dender, the president of Kinder Morgan's Natural Gas Midstream business, said the Tejas project "will be a critical supply link for the impending growth being discussed with power generators, industrial customers and LNG exporters along our Texas intrastate pipeline network." Subscribers can learn more from a detailed project report.
Earlier this year, Kinder Morgan asked the U.S. Federal Energy Regulatory Commission (FERC) for a five-year extension, up to July 2029, for its proposed Gulf LNG Liquefaction Terminal in Pascagoula, Mississippi, before it is required to begin shipping LNG. FERC authorized the construction and operation of Gulf LNG in July 2019, with an original shipping deadline of July 2024. The project is designed to liquefy and export 5.75 million metric tons per year of LNG. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases 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 and planned 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).
