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Kinder Morgan (NYSE:KMI) expressed optimism about the increasing demand for natural gas, particularly for liquefied natural gas export plants. This positive stance comes shortly after the company’s Q4 results revealed some weakness in its natural gas pipeline operations.
During the company’s investor day, CEO Kimberly Dang highlighted the bright prospects for U.S. natural gas, emphasizing its positive implications for both the existing business and expansion opportunities.
The attractive economics and low nitrogen content of natural gas from the Eagle Ford Shale are expected to drive significant production growth in the basin up to 2030. According to S&P Global Commodity Insights, Sital Mody, Kinder Morgan’s natural gas head, anticipates strong production growth reaching 2.5B cf/day, far surpassing the previously forecasted 500M cf/day increase by 2030.
Mody also emphasized that the Eagle Ford’s economic potential is expected to be on par with that of the Haynesville, making it a key focus for Kinder Morgan. Additionally, the company is considering the addition of two pipelines to the Permian Basin by 2030 to accommodate an anticipated 7B cf/day increase in production during the decade. Talks are already underway for a pipeline that could potentially commence service in early 2026 or late 2027, with discussions ongoing for the potential need for another pipeline a couple of years later.