Kinder Morgan (KMI) Sees LNG Demand Surge, Projecting 12 Bcf/d by 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 25 2026
0mins
Should l Buy KMI?
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.
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Analyst Views on KMI
Wall Street analysts forecast KMI stock price to fall
14 Analyst Rating
8 Buy
6 Hold
0 Sell
Moderate Buy
Current: 32.290
Low
27.00
Averages
31.62
High
36.00
Current: 32.290
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.
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- Earnings Growth Drivers: Although Energy Transfer does not produce oil, approximately 10% of its earnings are commodity price-linked, which are expected to rise with oil prices, while increased volumes through its liquids pipelines and marine export terminals will further boost revenue.
- LNG Project Restart Possibility: The closure of the Strait of Hormuz has disrupted global LNG supplies, prompting Energy Transfer to reconsider its Lake Charles LNG project, with potential discussions with partners that could add long-term value to its gas pipeline business.
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- LNG Project Restart Potential: Although the Lake Charles LNG project was suspended last year, the closure of the Strait of Hormuz, disrupting 20% of global LNG supplies, may prompt Energy Transfer to find a new partner to restart the project, adding long-term value to its gas pipeline business.
- Increased Pipeline Volumes: With U.S. energy exports surging due to geopolitical tensions, Energy Transfer expects significant increases in volumes across its liquids pipelines and marine export terminals, which will drive higher fee-based income and further boost unit prices.
- Valuation Upside Anticipation: Despite a more than 20% rise in unit price this year, Energy Transfer still trades at a discount compared to large-scale energy midstream companies, suggesting that the market may soon recognize its strong financial position and growth prospects, potentially driving unit prices towards the $25 target.
See More
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