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Rich Kinder, executive chairman of KMI said during the company’s third-quarter earnings call on Wednesday that there are two important factors that will impact the future of Kinder Morgan.
These are the natural gas story and the long-term strategy of KMI.
“On the natural gas demand front, there are two huge drivers. The first is the continued rapid growth in LNG feedgas demand driven by the enormous expansion of export facilities, primarily along the Gulf Coast. While industry experts differ somewhat, there’s a pretty broad consensus that demand will at least double between 2024 and 2030,” he said.
“In fact, S&P’s commodity insights recently estimated that increased at 130 percent, which implies a demand of 31 to 32 Bcf a day in 2030,” Kinder said.
“As an example of this growing demand, six LNG projects have reached FID so far in 2025. Feed gas demand for those facilities alone when completed will be 9 Bcf per day. Now there’s more variance in assessing the impact of the second driver, which is the increasing demand for electricity, primarily to serve AI data centers. There will clearly be huge additional demand for electricity, but how much of that will be captured by natural gas,” he said.
Opportunities
KMI CEO Kim Dang noted that the company has long-term contracts to move almost 8 billion cubic feet per day (Bcf/d) of natural gas to LNG facilities.
Upon completion of projects under construction, that amount is expected to grow to almost 12 Bcf/d by the end of 2028.
“We are also pursuing a substantial number of additional LNG feedgas opportunities,” he said.
Answering a question about the opportunities during the call, he said that “we’ve 9 Bcf of gas demand from the projects that have FID recently.”
“So there’s a lot of different opportunities out there,” he said.
“Looking forward, our internal projections estimate 28 Bcf a day increase in natural gas demand by 2030 driven primarily by growth in LNG exports as well as power and exports to Mexico,” Dang said.