Kinder Morgan's Mississippi Crossing Project

(Reuters) – Kinder Morgan (NYSE:KMI) announced on Thursday that its unit Tennessee Gas Pipeline will proceed with the nearly $1.4 billion Mississippi Crossing Project (MSX Project), enhancing the pipeline operator's presence in the Southeast U.S. markets.

Shares of Kinder Morgan rose 2.4% to $26.44 in afternoon trading.

The MSX Project is designed to transport up to 1.5 billion cubic feet per day (Bcf/d) of natural gas. The project involves the construction of nearly 206 miles of pipeline. It will originate near Greenville, Mississippi, and end near Butler, Alabama, establishing connections to the existing Tennessee Gas Pipeline (TGP) system and third-party pipelines.

Expansion Plans

Kinder Morgan CEO Kim Dang remarked, "KMI has sanctioned about $3.1 billion in expansion capital between the SNG South System 4 Expansion and TGP's Mississippi Crossing Project. We expect to announce additional projects in the coming months."

The project is anticipated to be operational in November 2028.

Future Commitments

Meanwhile, Sital Mody, president of Natural Gas Pipelines, noted, "We are in final discussions with customers for up to an additional 0.4 Bcf/d of long-term commitments."

In November, U.S. natural gas producers indicated plans to increase production in 2025 following a series of production cuts this year, driven by rising demand from liquefied natural gas export plants expected to boost prices.