American Oil and Gas Reporter - September 2024 - 62

SpecialReport: Pipeline Infrastructure
Charles, La., will be fully subscribed
with 1.65 Bcf/d of capacity.
Already, the company's national system
can carry gas on intrastate and interstate
pipelines to power plants, industrial users,
and its own NGL export terminals.
" When you combine the efforts that we have made on
the NGL and natural gas gathering fronts, it creates a lot of
opportunity to expand our position with larger-diameter
pipelines to move gas and NGLs out of the Permian. "
Marshall " Mackie " McCrea
Co-Chief Executive Officer
Energy Transfer LP
" Our processing and pipeline projects
complement assets from five major transactions
over four years, " says Co-CEO
Thomas Long. He adds that Energy Transfer
remains bullish that the consolidation
trend will continue.
" Consolidation is good for us because
we serve customers from the wellhead to
water, " he says.
The merger in late 2023 with Crestwood
Equity Partners LP included water, oil
and gas midstream in the Williston Basin
and an entry into the Powder River.
Building extensive takeaway for
processed gas or NGLs is costly, but Energy
Transfer and producers will benefit
from announced plans by Kinder Morgan
to reverse the Double H crude pipeline
to carry NGLs from the Williston Basin
to the Gulf Coast.
" We expect to see some of those NGL
barrels end up going all the way from the
Bakken to our fractionation units at Mont
Belvieu, Tx., " McCrae remarks.
Significant Demand Growth
Kinder Morgan's $150 million Double
H crude-to-NGLs conversion is expected
to be in service in the first quarter of
2026, says company President Tom Martin.
" Future phases can provide incremental
capacity including in support of volumes
out of the Powder River Basin, " he said
during a July earnings call.
In the meantime, the Houston company,
which has 67,000 miles of pipeline that
transports roughly 40% of natural gas in
the United States, continues to expand
gas transportation capacity elsewhere and
consider opportunities amid expectations
of surging gas demand, it reports.
62 THE AMERICAN OIL & GAS REPORTER
Not counting the need for additional
supply at more LNG export terminals, gas
demand will get a big boost from U.S.
utility companies' plans to add 133 new
gas plants, partly to supply power at a
growing number of artificial intelligencedriven
data centers, says Kinder Morgan
Executive Chairman Richard Kinder.
" While it is hard to peg an exact estimate
of increased demand for natural
gas as a result of all of this growth and
the need for electric power, we believe it
will be significant and makes the future
even more robust for natural gas demand
overall and for our midstream industry, "
he says.
Kinder Morgan is currently in commercial
discussions on more than 5 Bcf/d
of opportunities related to power demand,
including 1.6 Bcf/d related to data center
demand, says Chief Executive Officer
Kimberly Dang.
" Certainly not all these projects will
come to fruition, but that gives you a
sense of the activity levels we are seeing
and support for our belief that growth in
natural gas between now and 2030 will be
well in excess of 20 Bcf/d, " she states.
New Pipeline Projects
Kinder Morgan has multiple projects
coming on line or set to soon enter
service. In July, the first phase of a
$670 million Evangeline Pass project
was placed in service with the second
phase expected to enter service next
summer. The project expands capacity
on the company's Tennessee Gas Pipeline
and Southern Natural Gas systems in
Mississippi and Louisiana to deliver up
to 2 Bcf/d of gas to Venture Global's
Plaquemines LNG facility, according
to a company overview of projects.
Expected to be in service in late 2028,
an ongoing $3 billion expansion is designed
to increase Southern Natural Gas pipeline's
South Line by 1.2 Bcf/f through looping
and more compression on SNG and the
Elba Express line to help meet more
power generation and local distribution
company demand in the Southeast.
In early July, the company says it executed
definitive agreements for the goahead
on the $263 million Altamont
Green River Pipeline to relieve production
constraints in the Uinta Basin. The pipeline
will include 43 miles of 20-inch line and
compression to transport up to 150
MMcf/d to the Western Chipeta processing
plant. Temporary facilities are being built
to accommodate immediate takeaway
American Oil and Gas Reporter - September 2024

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