Kinder Morgan (KMI) Sees LNG Demand Surge, Projecting 12 Bcf/d by 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Surge in Gas Demand: Kinder Morgan's natural gas pipeline segment achieved record performance last year, primarily driven by robust demand from liquefied natural gas (LNG) terminals, with current contracts to transport 8 billion cubic feet per day, projected to rise to 12 Bcf/d by 2028, indicating strong future growth potential.
- Power Sector Demand: The company is actively pursuing over 10 Bcf/d of opportunities to meet the growing demand for natural gas from the power generation sector, particularly driven by AI data centers, which is expected to significantly enhance its market position in the coming years.
- Capital Project Investments: Kinder Morgan has secured $10 billion in growth capital projects, expected to be completed by mid-2030, with about 90% allocated to gas infrastructure to support power demand, providing stable cash flow sources as they enter commercial service.
- Power Demand Forecast: The management highlighted that Georgia Power is projecting 53 gigawatts of power demand by the early 2030s, equivalent to roughly 10 Bcf/d of gas demand, showcasing the extensive demand potential across its pipeline network.
Analyst Views on KMI
Wall Street analysts forecast KMI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMI is 31.62 USD with a low forecast of 27.00 USD and a high forecast of 36.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
8 Buy
6 Hold
0 Sell
Moderate Buy
Current: 29.690
Low
27.00
Averages
31.62
High
36.00
Current: 29.690
Low
27.00
Averages
31.62
High
36.00
About KMI
Kinder Morgan, Inc. is an energy infrastructure company. The Company owns an interest in or operates approximately 79,000 miles of pipelines and 139 terminals. Its Natural Gas Pipelines segment includes ownership and operation of interstate and intrastate natural gas pipeline and storage systems and natural gas gathering systems and natural gas processing and treating facilities. Its Products Pipelines segment includes ownership and operation of refined petroleum products, crude oil and condensate pipelines that primarily deliver, among other products, gasoline, diesel and jet fuel, crude oil and condensate to various markets, plus the ownership and/or operation of associated product terminals and petroleum pipeline transmix facilities. Its Terminals segment includes ownership and/or operation of liquid and bulk terminal facilities and Jones Act-qualified tankers. Its CO2 segment is engaged in the production, transportation and marketing of CO2 to oil fields.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
