Kinder Morgan Strives to Develop Wholesale Electricity Market

Zacks

Kinder Morgan, Inc.’s KMI subsidiary, Tennessee Gas Pipeline has made a filing with the New Hampshire Public Utilities Commission for the examination of potential approaches to improve wholesale electricity market conditions in New Hampshire. The company aims to improve the market by providing more natural gas capacity to serve the region.

In the filing, Tennessee Gas Pipeline noted that New England is a region that is consistently witnessing the highest electricity and natural gas prices in the continental United States. The company is of the opinion that this anomaly can be reduced to a great extent through contracting for and building additional pipeline capacity in the region.

Kinder Morgan is one of the largest energy infrastructure companies in North America. The recent reorganization of Kinder Morgan companies into one has created the largest midstream company in North America. This will facilitate access to additional projects and lead to improved growth. We believe that the company’s size advantage provides it with opportunities to build smaller adjacent pipelines at lower cost than peers. Further, increased demand for power generation and exports is expected to drive continued infrastructure build-out for the company.

It owns an interest in or operates approximately 84,000 miles of pipelines and 180 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. Kinder Morgan is the largest midstream and third-largest energy company in North America with an enterprise value of more than $130 billion.

Kinder Morgan currently carries a Zacks Rank #5 (Strong Sell). Better-ranked players in the sector include Pembina Pipeline Corporation PBA, LRR Energy LP LRE and WPX Energy Inc. WPX. All these stocks sport a Zacks Rank #1 (Strong Buy).

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