October 12, 2017 [Market Realist] - Kinder Morgan (KMI) has invested ~$59 billion in assets and acquisitions since its inception. Of this, $27.3 billion have been related to expansions, and $31.4 billion was spent on acquisitions.
The Natural Gas Pipelines segment accounted for $32 billion of the capital spent, followed by $10 billion for the Terminals segment. Kinder Morgan expected to spend $3.2 billion on capital projects in 2017. After its Canadian IPO, the company now expects expenditures of $3.1 billion on capital projects.
Kinder Morgan has a project backlog of $12 billion for the next five years. Around 86% of this backlog is for fee-based pipelines, terminals, and related facilities.
Key projects under construction
Kinder Morgan’s $2 billion Elba Liquefaction Project is supported by a 20-year contract with Shell. The project is expected to come into service in mid-2018.
Construction continues at KMI’s crude oil storage terminal in Edmonton. Commissioning of the facility is expected to begin in 1Q18 with tanks phased into service throughout the year. KMI invested 366 million Canadian dollars in the terminal. The project is fully backed by long-term, firm take-or-pay contracts.
Kinder Morgan’s $540 million Utopia Pipeline Project’s expected in-service date is in January 2018. The Utopia Pipeline will move ethane from Ohio to Ontario. The project is fully supported by a long-term, fee-based agreement with a customer.
In the next part, we’ll analyze factors that are driving KMI’s leverage down.
—————————-
TankTerminals.com – Research, Market and Expand Your Presence within the Tank Storage Industry Learn more.
