Kinder Morgan KMI, a Houston-based midstream energy company, has announced that it will move forward with its $1.7 billion Trident Intrastate Pipeline project in Katy, TX. Once completed, this ambitious 216-mile pipeline will transport 1.5 billion cubic feet of natural gas per day to Port Arthur. The project is scheduled to go live by the first quarter of 2027, contingent upon securing the necessary permits and approvals.
CEO Kim Dang highlighted that the pipeline's development is strongly connected to the increasing energy needs of Texas's growing AI data center sector, which has been a significant driver for the project. Kinder Morgan has already secured long-term contracts for the pipeline and two other major natural gas projects — South System Expansion 4 and Mississippi Crossing — with a combined projected cost of around $5 billion.
In its commitment to responsible development, Kinder Morgan highlighted that the Trident Intrastate Pipeline project is backed by long-term contracts. Additionally, the company is working closely with impacted landowners to address concerns regarding the pipeline's route and construction.
The Trident project is part of a broader trend in Texas, where several energy infrastructure developments are being announced. Last month, Energy Transfer approved the final investment decision for the Hugh Brinson Pipeline, which will deliver 2.2 billion cubic feet per day of natural gas to the Dallas-Fort Worth area.
Similarly, WhiteWater Midstream revealed plans for a 2.5 billion cubic feet per day pipeline linking the Permian Basin to a gas hub near Corpus Christi. These projects reflect the increasing demand for natural gas in Texas and the ongoing efforts to expand the state's energy infrastructure.
As Kinder Morgan advances with the Trident pipeline, the company is positioning itself to meet the future energy needs of both industrial growth and the digital economy, reinforcing Texas’ role as a critical player in the U.S. energy landscape.
KMI’s Zacks Rank & Other Key Picks
Kinder Morgan currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.
Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas's role as a clean-burning fuel amid a low-carbon shift.
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