U.S. funding for clean energy projects including the Inflation Reduction Act will help Kinder Morgan (NYSE:KMI) accelerate investments in renewable natural gas and carbon sequestration, the pipeline company said Wednesday at its Investor Day, as reported by Reuters.
The funding “accelerates growth opportunities” in renewable natural gas, renewable diesel, hydrogen, and carbon capture and storage, the company said in a presentation.
Kinder Morgan (KMI) said FY 2023 EBITDA in its carbon dioxide business is set to grow 9% to $879M.
Also, many of the company’s long-haul gas pipeline systems are nearly full and face constraints on peak days, President Kim Dang said.
The utilization rate on Tennessee Gas Pipeline, which runs from Texas to New England, has jumped to 97% in 2022 from 86% in 2015, while the El Paso Natural Gas Pipeline from Texas to California saw utilization climb to 86% from 67%.
Kinder Morgan (KMI) also said its El Paso Natural Gas Co. submitted a request to the Pipeline and Hazardous Materials Safety Administration to resume service at a conduit that has been shut since a 2021 explosion.
KinderMorgan (KMI) reported last week that Q4 adjusted EBITDA rose 8% Y/Y to $1.95B and distributable cash flow increased 13% to $0.54/share.
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