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01/27/2025
Sometimes progress looks like 216 miles of pipeline—Kinder Morgan’s $1.7B Trident project is proof of that.
Kinder Morgan has unveiled plans to construct the Trident Intrastate Pipeline, a $1.7 billion project spanning 216 miles, designed to enhance natural gas transportation between Katy, Texas, and the Gulf Coast’s LNG and industrial hub near Port Arthur. The pipeline will have a capacity of 1.5 Bcf/d and is set to commence operations in the first quarter of 2027, pending regulatory approvals.
The project, announced on January 22, underscores Kinder Morgan’s commitment to addressing the growing demand for natural gas in LNG exports, power generation, and emerging sectors like artificial intelligence (AI), cryptocurrency mining, and data centers.
“For several quarters, we’ve highlighted significant new natural gas demand in these areas,” said CEO Kim Dang in the company’s Q4 2024 earnings release. “These expectations are now materializing. Our commercial teams have secured contracts for three major natural gas projects—South System Expansion 4, Mississippi Crossing, and Trident—totaling $5 billion in project costs. These initiatives are progressing and will drive substantial growth once operational.”
STRATEGIC INFRASTRUCTURE EXPANSION
The Trident project is part of a larger wave of natural gas infrastructure development announced in 2024 and 2025:
- December 2024: Energy Transfer (ET) reached a final investment decision (FID) on the Hugh Brinson Pipeline, a 2.2 Bcf/d capacity project.
- October 2024: Kinder Morgan finalized plans for the Gulf Coast Express expansion to enhance natural gas distribution across the southern U.S.
- July 2024: WhiteWater Midstream announced the Blackcomb Pipeline, a 2.5 Bcf/d capacity project connecting the Permian Basin to the Agua Dulce hub. It is scheduled for completion in late 2026.
These projects follow the successful fourth-quarter launch of the 2.5 Bcf/d Matterhorn Express pipeline, which achieved record-breaking capacity fill rates in the Permian Basin.
KINDER MORGAN’S STRONG FINANCIAL POSITION
Kinder Morgan’s Q4 2024 results underscore its robust execution and strategic alignment with U.S. energy demands. Highlights include:
- Earnings Growth: EPS grew 11% to $0.30, while Adjusted EBITDA rose 7% to $2.06 billion.
- Free Cash Flow: $0.7 billion in free cash flow bolsters its ability to fund growth initiatives and shareholder returns.
The company’s project backlog surged to $8.1 billion, with 89% focused on natural gas infrastructure projects, including the Trident pipeline. These projects boast a 5.8x EBITDA multiple, reflecting strong return potential.
For 2025, Kinder Morgan projects net income growth of 8% to $2.8 billion and a 4% increase in Adjusted EBITDA to $8.3 billion. This guidance, which appears conservative given the strong project pipeline, highlights Kinder Morgan’s focus on LNG, power generation, and new high-energy sectors like AI data centers.
STRATEGIC ADVANTAGES AND FUTURE GROWTH
Kinder Morgan’s infrastructure strategy positions it as a U.S. natural gas sector leader. Along with projects like Mississippi Crossing and South System Expansion 4, the Trident pipeline creates a comprehensive network targeting high-growth areas. The timing aligns with rising LNG export demand and increased energy needs from AI and cryptocurrency sectors.
The company’s balance sheet remains strong, with a net debt-to-adjusted EBITDA ratio of 4.0x, expected to improve to 3.8x by year-end 2025. Additionally, Kinder Morgan increased its quarterly dividend by 2% to $0.2875 ($1.15 annualized), reflecting its commitment to balancing growth investments with shareholder returns.
Article Tags
Energy Transfer
Gulf Coast
Kinder Morgan
LNG
natural gas
Permian Basin
Port Arthur
Trident Intrastate Pipeline
Gulf Coast
Kinder Morgan
LNG
natural gas
Permian Basin
Port Arthur
Trident Intrastate Pipeline
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