Kinder Morgan and Its Natural Gas Export Opportunity

According to Kinder Morgan (NYSE: KMI) investor presentations, demand for natural gas in the US expected to rise by 32% over the next nine years. Most of those gains will come from the US becoming a net exporter of natural gas in 2017, with exports predicted to keep increasing. Since Kinder Morgan operates one of the largest networks of natural gas pipelines in the US, moving about 40% of gas consumed in the US, it's in a good position to capture much of this business.

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We can glimpse into Kinder Morgan's future by looking at their current capital projects. Kinder Morgan's largest capital project on the go is the expansion of their LNG plant on Elba Island, in Georgia, to include liquefaction and export capacity. This $1.9 billion project is supported by 20-year contract with Royal Dutch Shell and due to come on line next year. Additionally, there is about $2 billion worth of various expansion or upgrade projects underway along its gas network also subscribed under long-term contracts, some of which related to pipelines connecting to Mexico. The Mier-Monterrey pipeline is one example.

Source: Fool.com