KMI net income up 5%, expansion projects on pace

Kinder Morgan Inc. (KMI) had fourth-quarter 2022 net income attributable of $670 million, compared with net income of $637 million in fourth-quarter 2021. KMI’s natural gas pipeline segment’s financial performance was up in fourth-quarter 2022 from the same timing in 2021, primarily on higher contributions from its Texas Intrastate system, Midcontinent Express pipeline, and El Paso Natural Gas (EPNG); increased volumes on its KinderHawk gathering system; and favorable pricing on the Altamont gathering system in Uinta basin, partially offset by lower contributions from its South Texas gathering assets.

Natural gas transport volumes were up 4% compared with fourth-quarter 2021, with increases on EPNG due to colder weather and coal-fired power generation retirements; on Kinder Morgan Louisiana Pipeline due to increased deliveries to LNG customers; and on Colorado Interstate Gas pipeline and Natural Gas Pipeline Co. of America due to colder weather. Natural gas gathering volumes rose 6% from fourth-quarter 2021 with higher volumes primarily on KinderHawk, which serves the Haynesville shale.

Contributions from the products pipelines segment were down compared with fourth-quarter 2021 primarily due to higher operating expenses, as well as lower contributions from KMI’s crude and condensate business. Total refined products volumes were down 1%, while crude and condensate pipeline volumes were down 6%.

Land acquisition and the procurement of materials and construction contractors continues to progress as planned for the Permian Highway natural gas pipeline expansion project, KMI said. The project will expand Permian Highway’s capacity by about 550 MMcfd, to more than 2.5 bcfd, with a target in-service date of Nov. 1, 2023. Permian Highway is jointly owned by subsidiaries of KMI, Kinetik Holdings Inc., and Exxon Mobil Corp. KMI operates the system.

Tennessee Gas Pipeline (TGP) has started work on two of the three compressor stations involved in its 115-MMcfd East 300 Upgrade project. The two compressor stations being expanded are in Susquehanna County, Pa. TGP expects to file for a notice to proceed from the US Federal Energy Regulatory Commission (FERC) in first-quarter 2023 for construction of the remaining newbuild compressor station in Sussex County, NJ. TGP has entered a long-term, binding agreement with Consolidated Edison Inc. for the 115 MMcfd. Pending receipt of all required permits, the project has an expected in-service date of Nov. 1, 2023.

KMI is moving forward with the previously approved 2-bcfd Evangeline Pass project after receiving notice and appropriate credit support from Venture Global LNG Inc. to proceed with construction activities. The two-phase project includes modifications and enhancements to portions of the TGP and Southern Natural Gas systems in Mississippi and Louisiana. The project will enable the delivery of full FERC-certificated project volumes to Venture Global’s proposed 20-million tonne/year Plaquemines LNG plant. Pending receipt of all required permits, expected in-service dates will align with Venture Global’s 2024-25 startup.