By Sumit Saha (Reuters) -U.S. pipeline operator Kinder Morgan posted a rise in third-quarter profit on Wednesday, helped by higher volumes of natural gas transported through its pipelines. The U.S. LNG sector is witnessing a resurgence in commercial activity driven by expectations of rising exports as new terminals come online following President Donald Trump’s January […]
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Kinder Morgan posts higher third-quarter profit on stronger natural gas demand
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By Sumit Saha
(Reuters) -U.S. pipeline operator Kinder Morgan posted a rise in third-quarter profit on Wednesday, helped by higher volumes of natural gas transported through its pipelines.
The U.S. LNG sector is witnessing a resurgence in commercial activity driven by expectations of rising exports as new terminals come online following President Donald Trump’s January decision to lift a pause on new permits.
“Total demand for natural gas is expected to grow … We are also actively exploring more than 10 Bcf/d (billion cubic feet per day) of opportunities to serve the natural gas power generation sector,” CEO Kim Dang said.
“Our internal projections estimate 28 Bcf/d increase in natural gas demand by 2030,” which will be driven primarily by growth in LNG exports, as well as power demand and exports to Mexico, Dang added during a post-earnings call.
The company, which moves roughly 40% of the country’s total natural gas output, said the project backlog stood at $9.3 billion, with about $500 million of projects placed in service during the quarter offset by a roughly equivalent amount of projects added.
The company said it transported about 47,461 billion British thermal units of natural gas per day in the quarter, compared with 44,827 billion Btu per day last year.
However, its total delivery volumes, which also include refined products such as jet fuel and diesel fuel, fell to 2.11 thousand barrels per day during the quarter ended September 30, from 2.15 thousand barrels per day last year.
Kinder Morgan’s CO2 segment, which includes enhanced oil recovery operations and renewable natural gas projects, saw weaker results due to lower CO2 and D3 RIN (renewable fuel credit) prices.
The Houston, Texas-based company said its net income came in at $628 million for the three months ended September 30, compared with $625 million a year earlier.
(Reporting by Sumit Saha in Bengaluru; Editing by Alan Barona)