Kinder Morgan Approves $4.7 Billion Investment to Build Two Natural Gas Pipelines

en.Wedoany.com Reported - On October 21, U.S. energy infrastructure operator Kinder Morgan approved a total investment of approximately $4.7 billion in two natural gas pipeline joint ventures, respectively building the Southeast Connection Pipeline and the Permian Connection Pipeline. The two pipelines have a planned total length of approximately 1,455 kilometers and a combined designed daily transmission capacity of approximately 153 million cubic meters, primarily serving the power market, data centers, and natural gas transmission demand in the southeastern United States, with phased operations planned to begin in 2030.

Among them, the Southeast Connection Pipeline project is being advanced by Southern Natural Gas Company, with Kinder Morgan planning to invest approximately $3.1 billion. The project will build approximately 756 kilometers of new natural gas pipeline with a designed daily transmission capacity of up to approximately 73.6 million cubic meters, delivering fuel to the growing natural gas consumption market in the southeastern United States. The project is planned to begin phased operations in the fourth quarter of 2030.

The Permian Connection Pipeline project is being advanced by U.S. Natural Gas Pipeline Company, with Kinder Morgan's investment share of approximately $1.6 billion. The pipeline has a total length of approximately 698 kilometers and a designed daily transmission capacity of approximately 79.3 million cubic meters, originating from the Permian Basin near Pecos County, Texas, and connecting to U.S. Natural Gas Pipeline Company's existing transmission system in the Mid-Continent region, with operations planned to begin in the third quarter of 2030.

The Permian Connection Pipeline has already secured partial downstream gas supply arrangements, and will deliver natural gas to energy providers that supply power to large data center customers. Kinder Morgan management stated on the quarterly earnings conference call that, in addition to existing large data center-related customers, the project has also attracted interest from other potential users.

With the approval of these two investments, Kinder Morgan's approved project backlog has risen to $14.4 billion, of which natural gas projects reached a record $13.2 billion. The $4.7 billion approved by the company this time represents its investment share in the two joint venture projects, not the total investment amount of the two pipeline projects.