Kinder Morgan Energy Infrastructure Deck
Growing Demand for Our Natural Gas Transportation & Storage
Assets Leading to Increased Value
Natural Gas Transport
KM NATURAL GAS TRANSPORT & SALES VOLUMES
KINDER MORGAN
tbtud
39.2
39.8
41.0 41.5
35.3
30.8
30.4
31.4
U.S. natural gas demand grew 36% over
the past 7 years, from 78 to 106 bcfd
Favorable recontracting & new opportunities
Able to increase rates and/or term for transport, resulting in reduced
recontracting risk; the base business can be sustained and modestly
grow, for example:
-
-
2015
2016
2017
2018
2019
2020
2021
2022
KM pipeline throughput increased 11 bcfd since 2015
Added capacity, but many long-haul systems are highly utilized on
average & have constraints on peak days, for example:
average contract term
TX Intrastates
2015
3.5 yrs
2022
5.7 yrs
average utilization
2015
2022
TGP
86%
97%
EPNG
67%
86%
Difficult to build long-haul interstate pipeline capacity
Natural Gas Storage
Capacity nationwide has increased only 1% since 2015, KM +3%
excluding acquisition/divestitures
Demand volatility has increased
Previously weather-driven, but now weather + renewables + LNG
Example during winter storm Elliot (December 2022):
Peak 1-day demand = 162 bcf (record)
-
Supply 86 bcf (declined due to well freeze-offs)
Additional volumes lead to growth opportunities, which are tending to be
concentrated along the Gulf Coast in Texas and Louisiana. Growth
investment attributable to $2.7bn stable, contracted, fee-based natural
gas backlog
Increased storage values across our systems
-
As renewable penetration increases, the high level of cyclic demand
further drives value for the unique storage services we can provide to
customers as a reliable backstop
Storage is critical to LNG facilities – demand variability due to weather,
maintenance, cargo cancellations
Able to increase rates and/or term for storage
Rates still below cost to develop greenfield storage
Source for U.S. demand figures Wood Mackenzie, North America Gas 10-Year Investment Horizon Outlook, October 2023. U.S. working storage capacity per the EIA.
Note: U.S. storage capacity data is only available through year-end 2021.
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