Kinder Morgan Eyes Texas, Other Gas Hotspots for New Pipelines

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

With global demand soaring for LNG, Kinder Morgan's Elba Island Terminal joins its gas-pipeline infrastructure in Texas for substantial improvements and additions.

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More Takeaway for Texas

Natural gas demand across the U.S.--and elsewhere--has nowhere to go but up, and Kinder Morgan Incorporated isn't hesitating to take the reins in gas pipeline development. According to Industrial Info Resources data, the midstream titan is at work on more than US$18 billion worth of active and proposed projects, about US$14 billion of which is attributed to natural gas or liquefied natural gas (LNG) transportation.

There's good reason for this buildout: Kinder Morgan executives believe total U.S. natural gas demand will reach 150 billion cubic feet per day by 2031, up roughly 27% from current levels. The company started seeing this demand growth in the recently ended quarter.

"Every segment delivered growth versus the first quarter of 2025, and every segment outperformed our budget," said Kimberly Dang, the chief executive officer of Kinder Morgan, in a quarterly earnings-related conference call Wednesday. "Natural gas drove the most significant share of the outperformance, benefiting from winter storm burn and the extended cold in the Northeast."

Earlier this year, Kinder Morgan started construction on its 216-mile Trident Pipeline Project in Texas, which is designed to carry up to 1.5 billion cubic feet per day from the Katy Hub, which is near Houston, to the Sabine-Neches Waterway near Port Arthur. The project, which includes four new compressor stations along its route, currently is expected to finish construction toward the end of 2027.

For more information on Trident, the Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database offers details--including key components, investment values and necessary equipment--in detailed reports on the pipeline and its compressor stations.

Kinder Morgan also announced it recently had acquired 225 miles of gas-pipeline infrastructure in Texas: "During the quarter, we entered into an agreement to acquire the Monument pipeline system in Texas for approximately US$500 million," Dang said in the earnings call. "These assets are a natural fit with our existing network, supported by long-term contracts."

Kinder Morgan bought the Monument system from ARM Energy Holdings LLC, which itself purchased the system from NextEra Energy Partners LP in 2022. The line runs from Katy to connections in and around the Houston Ship Channel, La Porte and League City market areas. For more information, the Industrial Info Resources Pipeline Database offers a detailed list of pipeline reports.

By the Numbers

• More than US$18 billion: Total investment in Kinder Morgan's active and proposed projects
• 27%: Kinder Morgan's projected increase in total U.S. natural gas demand through 2031
• 225 miles: Kinder Morgan's newly acquired gas-pipeline capacity in Texas, following its purchase of Monument pipeline system

Iran Conflict Fuels Demand for U.S. LNG

"The demand for natural gas--driven primarily by growth in LNG feed gas demand and by increased utilization of natural gas for electric generation--has simply grown faster than we expected," said Richard Kinder, the executive chairman of Kinder Morgan, in the earnings call.

Kinder pointed to the ongoing violence in the Middle East as a major influence: "The damage to Qatar liquefaction facilities and continued uncertainty regarding ship traffic through the Strait of Hormuz will lead to more preference for U.S.-sourced LNG, and the predictions for growth in gas-fired electric generation have also increased."

At its Elba Island LNG Terminal in Savannah, Georgia, Kinder Morgan is wrapping up a yearlong optimization project that kicked off in May 2025. The company is constructing a new condensate plant and installing three new liquid nitrogen vaporizers, which are expected to boost the facility's liquefaction capacity by 400,000 metric tons per year to 2.9 million metric tons per year. For more information, readers can consult a detailed plant profile and project report.

Kinder Morgan reported total revenues for first-quarter 2026 of US$4.83 billion, a 13.8% increase from the same period last year. Net income was reported to be US$976 million, a 36.2% increase.

Subscribers can click here for a full list of active and proposed projects from Kinder Morgan.

Key Takeaways

• Recent demand for natural gas has exceeded even Kinder Morgan's expectations, with any near-term slowdown unlikely.
• Kinder Morgan is investing more heavily in its gas-pipeline infrastructure in hotspots like Texas.
• Ongoing violence in the Middle East "will lead to more preference for U.S.-sourced LNG," one executive said.

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About Industrial Info Resources
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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).