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Kinder Morgan's (KMI) NGPL Seeks Approval for Expansion

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A Kinder Morgan Inc (KMI - Free Report) operated natural gas pipeline system —Natural Gas Pipeline Co. (NGPL) of America — is seeking regulatory approval for compression-based expansion of about 330,000 dekatherms per day (Dt/d).

NGPL, which is the backbone for feed gas supply for Sabine Pass LNG export terminal of Cheniere Energy, Inc (LNG - Free Report) , will provide the second export project on the Gulf Coast through the expansion.

Per the Federal Energy Regulatory Commission (FERC), NGPL submitted an application to request expansion on the Gulf Coast Mainline system to provide 300,000 dt/d of firm southbound transportation capacity to Corpus Christi Liquefaction. The expansion, estimated at $145.2 million, will enable NGPL to supply 28,000 dt/d to the market.

The scope of expansion comprises an additional 10,000 hp compressor unit and related facilities at a compressor station in Victoria County, Texas, an additional 15,900 hp turbine at a compressor station in Wharton County, Texas as well as two additional 23,470 hp turbines at a compressor station in Harrison County. A dozen compressor units at two of those stations (CP19-99) are likely to be abandoned in place by NGPL.

In the previous week, Cheniere's Corpus Christi Liquefaction unit received approval from FERC to commence gas liquefaction and export activities on the first train at the Corpus Christi LNG export terminal on the Texas coast.The production capacity of the train is 4.5 million mt/year of LNG. On March 4, Cheniere stated that a unit of engineering and construction company Bechtel had switched control of the train (CP12-507).

On January 18, NGPL requested for a 500,000 Dt/d expansion of its Lockridge gas pipeline in the Permian Basin area in Texas.

Zacks Rank & Key Picks

Kinder Morgan currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector can opt for some better-ranked stocks as given below.

CrossAmerica Partners L.P. (CAPL - Free Report) is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The company delivered average positive earnings surprise of 655% in the last four quarters. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

San Antonio, TX-based NuStar Energy L.P. is a midstream energy company. For 2019, the bottom line, which has witnessed three upside revisions in the past 60 days, is expected to grow 64.2% year over year. The company currently holds a Zacks Rank #2 (Buy).

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