(Steve Stewart, Energy Analytics Institute, 19.Dec.2024) — Kinder Morgan, Inc. subsidiary Tennessee Gas Pipeline, L.L.C. (TGP) will move forward the $1.4bn Mississippi Crossing Project (MSX Project) after securing long-term, binding transportation agreements with customers for all the capacity.
The MSX Project is designed to move up to 1.5 billion cubic feet per day (Bcf/d) of natural gas, Kinder Morgan announced 19 Dec. 2024 in an official statement. And, pending receipt of all required permits and clearances, the MSX Project is slated to commence service in Nov. 2028.
The MSX Project primarily involves construction of nearly 206 miles of 42-inch and 36-inch pipeline and 2 new compressor stations. The project will originate near Greenville, Mississippi, and end near Butler, Alabama, and have connections to the existing TGP system and third-party pipelines to provide critical supply access sourced from multiple supply basins.
“This transformative project will benefit the Southeast region as it will provide incremental access to diverse sources of supply,” Natural Gas Pipelines president Sital Mody said in the statement.
“The additional supply will help satisfy growing energy demand and lower energy costs, allowing power generators and other energy suppliers in the region to attract new residential, commercial and industrial opportunities. We are in final discussions with customers for up to an additional 0.4 Bcf/d of long-term commitments, which would require additional capital for incremental horsepower,” Mody said.
The fundamentals in the gas market are robust, with significant growth expected over the coming 5 years from liquefied natural gas (LNG) exports, piped-gas exports to Mexico and power generation KMI CEO Kim Dang said in the statement.
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“With today’s announcement, KMI has sanctioned approximately $3.1bn (KMI share) 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,” Dang said.
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By Steve Stewart reporting from Baton Rouge. © Energy Analytics Institute (EAI). All Rights Reserved.
