AI Could Power Huge Demand for This Fuel by 2030
Demand for natural gas is strong and growing. Natural gas pipeline giant Kinder Morgan (NYSE: KMI) expects natural gas demand in the country to grow substantially between now and 2030. Exports are a major catalyst. The company anticipates demand for liquified natural gas (LNG) to more than double, while shipments to Mexico will grow by over 50%.
On top of that, the company now sees additional demand catalysts, including artificial intelligence (AI) operations, cryptocurrency mining, and data centers, powering incremental demand for natural gas. Here's a look at why it expects the fossil fuel to be crucial to supporting AI and how that should benefit the pipeline stock.
Kinder Morgan's co-founder and Executive Chairman, Richard Kinder, discussed the company's outlook for natural gas during its recent first-quarter conference call. He began by stating that he had "talked a lot about the demand for natural gas resulting from this country's LNG export facilities." However, this time he wanted to speak about another power source driving increased demand for the fuel: "[T]he tremendous expected growth in the need for electric power."
Source Fool.com
