KMI's Tennessee Gas Pipeline Greenlights Mississippi Crossing Project

Core Insights - Kinder Morgan Inc. (KMI) has made a final investment decision to proceed with the Mississippi Crossing Project (MSX Project), which involves constructing a pipeline network of approximately 2.6 miles and two new compressor stations to transport up to 1.5 billion cubic feet per day (Bcf/d) of natural gas at an estimated cost of nearly $1.4 billion [1] Economic and Regional Benefits of the Project - The decision to proceed was based on securing long-term, binding transportation contracts with customers for the entire capacity of the project, which is expected to enhance access to natural gas in the Southeast region and diversify supply sources, thereby lowering costs and meeting rising energy demand [2] - The incremental supply from the project is anticipated to create new residential and industrial opportunities for other energy providers [2] Capacity Expansion - Advanced discussions are ongoing with KMI's customers to secure additional long-term commitments that could add 0.4 Bcf/d to the project's total capacity, necessitating increased capital for more horsepower [3] Key Features of the MSX Project - The MSX Project will start near Greenville, MS, and end near Butler, AL, connecting to TGP's existing pipeline system and third-party pipelines, which will provide access to critical gas supplies from multiple basins, reducing dependence on a single supply source [4] Project Timeline - The project is pending necessary permits and clearances, with operations expected to commence by November 2028 upon receiving approvals [5] KMI's Outlook & Strategic Investments - KMI maintains a positive outlook for the natural gas market, anticipating significant growth in LNG exports and power generation over the next five years, along with increased exports to Mexico [6] - The company has committed $3.1 billion in expansion capital towards the SNG South System 4 Expansion and the MSX Project [6]