• 3 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 6 minutes Your idea of oil/gas prices next ten years
  • 12 minutes WTI Heading for $60
  • 1 hour Is California becoming a National Security Risk to the U.S.?
  • 5 hours Plastic Myth-Busters
  • 4 hours At U.N. climate talks, US Administration Plans Sideshow On Coal
  • 6 hours Good Sign for US Farmers: Soybean Prices Signals US-China Trade Deal Progress
  • 12 hours A Sane Take on Nord Stream 2
  • 13 hours Soybean sale to China down 94%
  • 10 hours I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 4 hours UK Power and loss of power stations
  • 12 hours what's up with NG?
  • 3 hours OPEC Builds Case For Oil Supply Cut
  • 1 day Starbucks slashing its corporate workforce
  • 1 day New Oil Order- Diplomacy, Geopolitics and Economics
  • 23 hours Here We Go Again: EU Will Hit Back If U.S. Imposes Car Tariffs
Plunging Battery Costs To Trigger Energy Storage Boom

Plunging Battery Costs To Trigger Energy Storage Boom

The cost of producing batteries…

Is It Time To Go Long On Crude?

Is It Time To Go Long On Crude?

Oil leaped lower after my…

Kinder Morgan Cancels Gas Pipeline Project

trans mountain pipeline

Kinder Morgan has decided to shelve its Utica Marcellus Texas Pipeline project, the company said at the presentation of its third-quarter financial results. Instead, Kinder Morgan said, it will focus on its existing Tennessee Gas Pipeline, which transports natural gas from the Gulf Coast in Louisiana to the northeast, including New York and Boston.

The UMTP was supposed to transport natural gas liquids from the Utica and Marcellus shale plays to the Gulf Coast in Texas. Back in 2015, the company filed with the Federal Energy Regulatory Commission to abandon the TGP project in favor of the UMTP, which would have had a design capacity of 430,000 barrels daily. Now, the company will instead start working on reversing the flow of the TGP and is looking for producer commitments for the route between Appalachia and the Gulf Coast.

Kinder Morgan exceeded analyst expectations with its third-quarter results, reporting a net profit of US$693 million and announcing a quarterly dividend of US$0.20 per share. The net result compares with US$334 million booked in the third quarter of 2017. Cash flow also improved, rising 4 percent from Q3 2017 to US$1.1 billion, Kinder Morgan said.

The company earlier this year abandoned another, much more prominent project, in Canada. The Trans Mountain oil pipeline expansion that should have increased the flow of heavy crude from Alberta to the Canadian West Coast substantially was sold to the federal government in Ottawa after it became clear to Kinder Morgan that same government could not guarantee that the project would go through thanks to massive opposition from environmentalists and the new provincial government in British Columbia. Kinder Morgan said it expected cash proceeds from the Trans Mountain sale would total US$900 million.

At the same time, the company made a final investment decision on another pipeline, this time in the Permian, where producers have been faced with growing pipeline bottlenecks as production grows faster than the pipeline network. Kinder Morgan said it had secured sufficient long-term commitments for the Permian Highway pipeline to begin construction.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News