Kinder Morgan has approved $4.7 billion as its share of investment in two major natural gas pipeline joint ventures that together will add about 904 miles of new pipeline. The company made the approval citing the rising demand from power plants, data centers and LNG exporters. Also, this move by Kinder Morgan showcases how gas has become a key power source for data centers.
Kinder Morgan will invest approximately $3.1 billion in Southern Natural Gas’ Southeast Connector project. Moreover, it will invest approximately $1.6 billion in Natural Gas Pipeline Company of America’s (NGPL) Permian Link project.
Capacity and Timeline
Southeast Connector will move up to 2.6 billion cubic feet per day (Bcf/d) of natural gas. The gas will be moved through approximately 470 miles of new pipeline to growing markets in the U.S. Southeast.
As for the timeline, the project is expected to enter service in phases starting in the fourth quarter of 2030.
Permian Link to Provide Gas for Powering a Data Center
Permian Link will supply gas to power providers serving an investment-grade hyperscale data center customer, Kinder Morgan said. Executives stated on the company’s earnings call that the project has also drawn interest from customers beyond the anchor hyperscaler.
Also, the approvals raised Kinder Morgan’s project backlog to $14.4 billion, including a record $13.2 billion in natural gas projects.
The Houston-based company announced the investments alongside its third-quarter results, reporting adjusted earnings of 35 cents per share, ahead of analysts’ estimates of 32 cents, according to LSEG data.
Factsheet: Southeast Connector & Permian Link Pipeline Projects
Operating System: Southern Natural Gas (SNG), Natural Gas Pipeline Co. of America (NGPL)
Kinder Morgan Share: $3.1 Billion, $1.6 Billion
Total Project Cost: Scope-dependent $4.2 Billion total
Pipeline Distance: 470 miles, 434 miles
Added Capacity: Up to 2.6 Bcf/d 2.8 Bcf/d
Target Service Date: Phased starting ,Q4 2030, Expected Q3 2030
Primary Markets: U.S. Southeast utilities & growing power markets, Power suppliers for an anchor hyperscale data center customer
Key Strategic Takeaways
Record Project Backlog: The approvals push Kinder Morgan’s commercial backlog to $14.4 billion, with a record $13.2 billion concentrated specifically in natural gas infrastructure.
Data Center Focus: The Permian Link project directly addresses the massive energy consumption of modern data centers, anchored by a long-term contract with an investment-grade tech hyperscaler.
Financial Performance: Announced alongside Q3 financial results where Kinder Morgan posted adjusted EPS of $0.35, outperforming market consensus estimates of $0.32.
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