Kinder Morgan Purchases Natural Gas Gathering, Processing System for $640M

Kinder Morgan’s subsidiary, Hiland Partners Holdings, will obtain a natural gas gathering and processing system from Outrigger Energy II in North Dakota’s Williston Basin within the Bakken Formation. The $640 million acquisition, expected to close in Q1 2025, includes:

• A 270 MMcf/d processing facility
• A 104-mile, large-diameter, high-pressure rich gas gathering header pipeline with 350 MMcf/d of capacity

“We’re pleased to be integrating this complementary system with our existing Hiland gas assets to aggregate additional supplies from the Bakken,” said KMI Natural Gas Midstream President Tom Dender. “This strategic acquisition allows us to efficiently expand our footprint and provide incremental transportation and processing services to meet the growing needs of our customers.”

The natural gas gathering and processing systems are supported by long-term contracts from key customers in the Williston Basin and will connect supplies from the basin to high-demand markets in the northern United States and Canada: Montana, North Dakota, South Dakota, and Canada’s Alberta, Manitoba, and Saskatchewan provinces.

Kinder Morgan News

In late December 2024, Kinder Morgan’s Tennessee Gas Pipeline (TGP) received the green light for its Mississippi Crossing Project (MSX) after signing long-term capacity-transportation contracts with offtaking customers. Valued at approximately $1.4 billion, MSX, pending required permits and clearances, is expected to enter service in November 2028.

The MSX project will transport up to 1.5 Bcf/d of natural gas over 206 miles of 42- and 36-inch pipelines. It begins near Greenville, MS and terminates near Butler, AL, with two new compressor stations and connections to TGP’s current pipeline system. MSX also connects to third-party pipelines to provide necessary natural gas access derived from numerous supply basins.

Energy in Tennessee

In November 2024, the Tennessee Valley Authority (TVA) signed a 10-year power purchase agreement with Argo Infrastructure Partners, Brookfield Asset Management, and Brookfield Renewable. The Cheoah, Calderwood, Chilhowee, and Santeetlah dams will supply more than 14 GWh of carbon-free electricity to TVA customers starting in 2025 and continuing over the next decade, supporting TVA’s transition toward net-zero emissions by 2050.

The dams, collectively known as the Smoky Mountain hydroelectric facilities, are jointly owned by Argo and Brookfield. The Smoky Mountain portfolio spans four hydroelectric power facilities in eastern Tennessee and western North Carolina, with a total capacity of 377 MW, and generates a yearly average of 1.4 million MWh of energy. This power output is equivalent to avoiding ~1.1 million tons of CO₂ emissions annually.

In early May, TVA submitted an order with GE Vernova for 16 aeroderivative LM6000VELOX packages, each containing an LM6000 gas turbine and a generator, to be installed at the Kingston Energy Complex on the Clinch River. The packages are expected to supply up to 850 MW of electricity, enhancing energy grid reliability and granting TVA’s consumers continuous access to affordable power.

The LM6000VELOX units are slated to begin operation in 2028 and include dual-fuel capability to run on natural gas or liquid fuels when required. The dry low emissions combustor configuration can meet emissions limits in compliance with the regional air district requirements and avoids water consumption for NOx emissions abatement.