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Released October 23, 2023 | sugar land
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Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, Kinder Morgan Incorporated (NYSE:KMI) provided an update on its growth projects--including those for liquified natural gas (LNG), terminals and renewable natural gas (RNG). Industrial Info is tracking more than $12.6 billion worth of active projects across the U.S. from Kinder Morgan, more than half of which is attributed to grassroot projects.
"Our project backlog at the end of the third quarter was $3.8 billion, up from $3.7 billion in the second quarter," said Kim Dang, Kinder Morgan's president, in the company's recent third-quarter earnings press release. He added the company is devoting about 84% of the backlog to "lower-carbon energy investments, versus 80% in the second quarter, including natural gas as a substitute for higher emitting fuels, producer certified natural gas, renewable natural gas (RNG), renewable diesel (RD), and feedstocks associated with RD and sustainable aviation fuel."
Meanwhile, on the earnings conference call, Chief Financial Officer David Michels said the company's total capital spending for the year had reached $1.85 billion, including sustaining capital for growth projects and joint-venture contributions.
Natural Gas Pipelines
The company said construction is nearly complete on the 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 project will add approximately 500 million cubic feet per day (MMcf/d) to the Permian Highway Pipeline system and is on track to be in service in December. The additions include new compressor stations in Fredericksburg and Coyanosa as well as three in Houston, and a new, five-mile pipeline loop from Reeves County to Pecos County. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can read detailed reports on the Fredericksburg and Coyanosa stations; click here to read more information on the Houston projects and here for the pipeline loop project report.
Also expected to be in service in the fourth quarter is an approximately $237 million project that will expand the company's natural gas transportation system from the Eagle Ford shale. The project involves constructing 67 miles of 42-inch pipeline from a compressor station near Freer, Texas, to the Tejas pipeline system near Sinton, Texas. Subscribers can click here to read more information.
Terminals
The company said it has ordered long-lead materials for an approximately $54 million addition at its Geismar River Terminal in Louisiana, which involves constructing multiple tanks totaling approximately 250,000 barrels of heated storage capacity as well as various marine, rail and pipeline infrastructure improvements. The facility will meet the renewable diesel feedstock needs of an unnamed customer that has a long-term commercial agreement with Kinder Morgan. The project is expected to be in service by the fourth quarter of 2024. Subscribers to the GMI Terminals Project Database can click here for the project report.
RNG
Kinder Morgan also provided an update on an RNG project, noting the Liberty RNG plant in Monticello, Indiana, located at the site of a landfill, began operating earlier this month. Along with the now complete Twin Bridges landfill RNG facility, also in Indiana, the projects will convert approximately 17.28 million standard cubic feet per day of landfill gas to pipeline-quality RNG. The Liberty project interconnects with an existing, unnamed third-party pipeline in Cass County, while the Prairie View project delivers RNG to an unnamed third-party transmission pipeline nearby. Subscribers to the GMI Alternative Fuels Project Database can read detailed information on the Liberty and Twin Bridges projects.
The company's third-quarter financial results show a strong performance across its portfolio of assets, despite a slight dip in earnings; third-quarter net income was $532 million, compared with $576 million year-over-year.
"Our portfolio of assets performed very well during the quarter, as financial contributions from the Natural Gas Pipeline business segment, the Products Pipelines business segment and our Terminals business segment were all up relative to the third quarter of 2022," said Executive Chairman Richard Kinder.
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 on 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) 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).
"Our project backlog at the end of the third quarter was $3.8 billion, up from $3.7 billion in the second quarter," said Kim Dang, Kinder Morgan's president, in the company's recent third-quarter earnings press release. He added the company is devoting about 84% of the backlog to "lower-carbon energy investments, versus 80% in the second quarter, including natural gas as a substitute for higher emitting fuels, producer certified natural gas, renewable natural gas (RNG), renewable diesel (RD), and feedstocks associated with RD and sustainable aviation fuel."
Meanwhile, on the earnings conference call, Chief Financial Officer David Michels said the company's total capital spending for the year had reached $1.85 billion, including sustaining capital for growth projects and joint-venture contributions.
Natural Gas Pipelines
The company said construction is nearly complete on the 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 project will add approximately 500 million cubic feet per day (MMcf/d) to the Permian Highway Pipeline system and is on track to be in service in December. The additions include new compressor stations in Fredericksburg and Coyanosa as well as three in Houston, and a new, five-mile pipeline loop from Reeves County to Pecos County. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can read detailed reports on the Fredericksburg and Coyanosa stations; click here to read more information on the Houston projects and here for the pipeline loop project report.
Also expected to be in service in the fourth quarter is an approximately $237 million project that will expand the company's natural gas transportation system from the Eagle Ford shale. The project involves constructing 67 miles of 42-inch pipeline from a compressor station near Freer, Texas, to the Tejas pipeline system near Sinton, Texas. Subscribers can click here to read more information.
Terminals
The company said it has ordered long-lead materials for an approximately $54 million addition at its Geismar River Terminal in Louisiana, which involves constructing multiple tanks totaling approximately 250,000 barrels of heated storage capacity as well as various marine, rail and pipeline infrastructure improvements. The facility will meet the renewable diesel feedstock needs of an unnamed customer that has a long-term commercial agreement with Kinder Morgan. The project is expected to be in service by the fourth quarter of 2024. Subscribers to the GMI Terminals Project Database can click here for the project report.
RNG
Kinder Morgan also provided an update on an RNG project, noting the Liberty RNG plant in Monticello, Indiana, located at the site of a landfill, began operating earlier this month. Along with the now complete Twin Bridges landfill RNG facility, also in Indiana, the projects will convert approximately 17.28 million standard cubic feet per day of landfill gas to pipeline-quality RNG. The Liberty project interconnects with an existing, unnamed third-party pipeline in Cass County, while the Prairie View project delivers RNG to an unnamed third-party transmission pipeline nearby. Subscribers to the GMI Alternative Fuels Project Database can read detailed information on the Liberty and Twin Bridges projects.
The company's third-quarter financial results show a strong performance across its portfolio of assets, despite a slight dip in earnings; third-quarter net income was $532 million, compared with $576 million year-over-year.
"Our portfolio of assets performed very well during the quarter, as financial contributions from the Natural Gas Pipeline business segment, the Products Pipelines business segment and our Terminals business segment were all up relative to the third quarter of 2022," said Executive Chairman Richard Kinder.
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 on 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) 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).
