Kinder Morgan Inc Takes a Giant Leap Forward on Its Latest Project
Kinder Morgan (NYSE: KMI) announced a notable leap forward on one of the projects it has in development by signing a letter of intent with two partners to jointly develop its Gulf Coast Express Pipeline project (GCX Project). The company, which previous secured DCP Midstream (NYSE: DCP) as a partner, added Targa Resources (NYSE: TRGP) to its team this week, while also broadening the scope of the project. As a result, it's increasingly likely that the company will move forward with this project, which should help alleviate fears on its ability to grow its dividend.
Kinder Morgan initially pitched its GCX Project this past March by holding an open season on a proposed pipeline that would move natural gas from the prolific Permian Basin to the Gulf Coast. The scope included building a 430-mile pipeline that would transport up to 1.7 billion cubic feet per day (Bcf/d) from the resource-rich Permian to expanding gas markets along the coast, including export opportunities through LNG facilities and pipelines to Mexico. The project quickly generated a tremendous level of interest, including from leading Permian gas marketer DCP Midstream, which swiftly agreed to become a partner on the proposed pipeline.
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Source: Fool.com
Pioneer Natural Resources Stock
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