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Strong natural gas demand boosted the bottom line of Kinder Morgan in the third quarter, with the company reporting a 16% increase in earnings per share. “With historic growth in global natural gas demand, a favorable federal regulatory landscape, and strong support from permitting agencies, the outlook for our company is exceptionally promising,” the company’s executive chairman, Richard Kinder, said, as Kinder Morgan reported a modest increase in net profits for the third quarter to $628 million from $625 million a year earlier. “Our long-standing business model—owning midstream energy assets anchored by long-term, take-or-pay, fee-based contracts with creditworthy customers—positions us to continue delivering reliable performance and sustained value,” Kinder also said. Kinder Morgan’s chief executive, Kim Dang, reported that the company had long-term contracts for the transportation of close to 8 billion cu ft of natural gas to LNG plants on the Gulf Coast. By the end of 2028, this is expected to reach 1 billion cu ft, Dang said. “Overall, total demand for natural gas is expected to grow by 20% through 2030, led by LNG exports. We are also actively exploring more than 10 Bcf/d of opportunities to serve the natural gas power generation sector,” the top executive also said, adding that about half of the company’s backlog was for the power generation sector. Natural gas as a whole accounts for 90% of Kinder Morgan’s order backlog, Dang also reported. At the end of September, this backlog stood at $9.3 billion. LNG is perhaps the fastest-growing segment of the U.S. energy industry right now. With demand for gas globally seen surging over the next decades, capacity is being built fast, with the blessing of a pro-energy administration. Earlier this month, the Energy Information Administration forecast that North America’s total LNG capacity could increase more than twofold by 2029 thanks to new liquefaction plants coming online in the U.S., Canada, and Mexico in response to the demand projections. By Irina Slav for Oilprice.com More Top Reads From Oilprice.com: Kazakhstan to Keep New Fuel Price Freeze Until Spring Oil Rises as EIA Reports Across the Board Inventory Draw From Oil to Lithium: Texas's Next Energy Revolution
