Kinder Morgan takes FID on Trident Intrastate pipeline, net income up y-o-y
Kinder Morgan Inc. (KMI), Houston, has taken final investment decision (FID) to develop the 216-mile, $1.7-billion Trident Intrastate natural gas pipeline to deliver 1.5 bcfd from Katy, Tex., to the Port Arthur area.
Pending permits and approvals, the natural gas pipeline—underpinned by long-term contracts—is expected to be in service in first-quarter 2027, the company said as part of its fourth-quarter 2024 report released Jan. 22.
Natural gas projects
“For several quarters now, we have pointed to expected significant new natural gas demand for LNG, power plants, and emerging opportunities such as artificial intelligence operations, cryptocurrency mining, data centers and industrial re-shoring,” said chief executive officer Kim Dang. “These expectations are being realized,” she said.
“Our commercial teams have secured contracts to underpin three large natural gas projects - South System Expansion 4, Mississippi Crossing and Trident, totaling approximately $5 billion (KMI share) in project costs,” Dang continued. All are progressing and expected to contribute to ‘significant’ future growth, she said.
Initial survey work is progressing on the South System Expansion 4 (SSE4) project designed to increase Southern Natural Gas’s (SNG) South Line capacity by about 1.2 bcfd. Upon completion, the $3-billion project will help meet growing power generation and local distribution company demand in the Southeast. It will be completed in two phases and is almost entirely comprised of brownfield looping and horsepower compression additions on the SNG and Elba Express (EEC) pipeline systems. Subject to required approvals, KMI expects to place the first phase in service in fourth-quarter 2028 and the second phase in fourth-quarter 2029.
In fourth-quarter 2024, KMI secured additional long-term, binding transportation agreements on the Mississippi Crossing Project (MSX), resulting in a current project subscription of about 1.8 bcfd (OGJ Online, Dec. 19, 2024). FID to proceed with the $1.6-billion project to transport up to 2.1 bcfd of gas to Southeast US markets through nearly 206 miles of 42-in. and 36-in. OD pipeline and three new compressor stations.
The project will originate near Greenville, Miss., and end near Butler, Ala. Pending receipt of permits and clearances, the project is expected to be placed in service in November 2028.
KMI earnings, operations
KMI reported net income attributable to KMI of $667 million, compared with $594 million in fourth-quarter 2023. Adjusted net income attributable to KMI was $708 million. Cash flow from operations was $1.5 billion and free cash flow after capital expenditures was $700 million.
Natural gas transport volumes were flat to the fourth quarter of 2023. Natural gas gathering volumes were down 7% from fourth-quarter 2023, primarily from Haynesville and Bakken gathering systems due to lower commodity prices. On a full-year basis, gathering volumes were up 6% versus 2023.
Total refined products volumes were up 2%, and crude and condensate volumes were down 5%, compared with fourth-quarter 2023.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.