Kinder Morgan Sets 2030 Start for 2.6 Bcf/d Southeast Connector

Southern Natural Gas Company has made a final investment decision on the Southeast Connector Project, a pipeline designed to move up to 2.6 billion cubic feet of gas per day from Marcellus and Utica supply toward Southeast markets. Phased service is targeted to begin in the fourth quarter of 2030.

Plans call for about 470 miles of new pipeline and new and expanded compression infrastructure. Kinder Morgan expects its share of the project’s cost to be $3.1 billion. Additional customer commitments could support further expansion. Final capacity and capital expenditures will depend on the project’s ultimate scope.

The Southeast Connector is supported by long-term take-or-pay transportation agreements. Its target schedule depends on permits and approvals.

Natural Gas Pipeline Company of America also reached a final investment decision on the Permian Link. That project is designed to carry about 2.8 billion cubic feet per day through roughly 434 miles of new pipeline. Its estimated total cost is $4.2 billion, including an expected $1.6 billion share for Kinder Morgan. Permian Link is intended to serve new power generation for an A-rated hyperscaler.

Together, the two pipelines are designed to carry about 5.4 billion cubic feet per day. Kinder Morgan expects its combined share of their costs to be about $4.7 billion. Both projects have long-term take-or-pay agreements, and their target dates are subject to permits and approvals.

Kinder Morgan’s total expansion backlog stood at $14.4 billion on Sept. 30, up $4.7 billion from the prior quarter. The company added $5.4 billion in projects during the quarter, while $700 million of work entered service. Natural gas projects accounted for $13.2 billion of the backlog. The $14.4 billion figure covers the company’s overall expansion backlog; $4.7 billion is its expected cost share for these two pipelines.

More than 75% of the backlog supports power generation and local distribution company demand. The Southeast Connector would bring gas from Marcellus and Utica supply areas toward Southeast markets, while Permian Link is tied to new power generation.

Kinder Morgan’s third-quarter adjusted EBITDA rose 9% from a year earlier to $2.18 billion. Adjusted earnings per share increased 21% to 35 cents. The Southeast Connector’s phased service remains targeted for the fourth quarter of 2030, subject to permits and approvals.