Company type | Public |
---|---|
Industry | Oil and gas |
Founded | 1997 |
Founders |
|
Headquarters | Houston, Texas, U.S. |
Area served | United States and Canada |
Key people |
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Services | |
Revenue | US$16.61 billion (2021) [1] |
US$2.92 billion (2021) [1] | |
US$1.78 billion (2021) [1] | |
Total assets | US$70.42 billion (2021) [1] |
Total equity | US$30.82 billion (2021) [1] |
Number of employees | 10,529 (December 2021) [1] |
Website | kindermorgan |
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. [2] The company specializes in owning and controlling oil and gas pipelines and terminals. [3]
Kinder Morgan owns an interest in or operates approximately 83,000 miles (134,000 km) of pipelines and 143 terminals. [1] The company's pipelines transport natural gas, liquefied natural gas, ethanol, biodiesel, hydrogen, refined petroleum products, crude oil, carbon dioxide, and more. Kinder Morgan also stores or handles a variety of products and materials at their terminals such as gasoline, jet fuel, ethanol, coal, petroleum coke, and steel. [4]
The company has approximately 72,000 miles (116,000 km) of natural gas pipelines [5] and is the largest natural gas pipeline operator in the United States, moving about 40 percent of the natural gas consumed in the country. [6] [1] [7] The company previously had built a major presence in Canada with the Trans Mountain pipeline, but that infrastructure is now publicly owned and operated. [8] The company's CO2 division traditionally provides carbon dioxide (CO2) for enhanced oil recovery projects in North America, but also increasingly for carbon sequestration efforts. [9] [10]
Kinder Morgan Energy Partners (KMP) was founded in 1997 when a group of investors acquired the general partner of a small, publicly traded pipeline limited partnership (Enron Liquids Pipeline, L.P.) later renamed Kinder Morgan Energy Partners, L.P. [3] Its cofounder Rich Kinder had been the president of Enron. After Kinder was denied an expected promotion to replace Kenneth Lay as chief executive officer, he departed the company, purchasing its interest in ELP for $40 million. [11]
In 1999, Kinder Morgan conducted a reverse merger with KN Energy, a utility and pipeline company. [12] Natural Gas Pipeline Company of America (NGPL), which serves the Chicago market, was acquired through this deal. KN Energy became Kinder Morgan's second publicly traded company, Kinder Morgan, Inc. (KMI). [13]
In 2001, Kinder Morgan's third publicly traded company, Kinder Morgan Management, LLC (KMR) was formed to facilitate institutional ownership of KMP equity. [13]
On August 28, 2006, Kinder Morgan announced that it would be taken private in a management-led leveraged buyout totaling approximately $22 billion. Outside participants in the transaction include Fayez Sarofim, Goldman Sachs Capital Partners and Highstar Capital (then owned by AIG). [14] KMI began trading again on the NYSE on February 11, 2011, following the largest private-equity backed IPO offering in US history. [13]
In October 2011, Kinder Morgan Inc. agreed to buy El Paso Corp. for $21.1 billion and gave the combined company 67,000 miles (108,000 km) of gas lines, eclipsing Enterprise Products Partners LP as the biggest US pipeline operator. The transaction was paid for with shares of Kinder Morgan, Kinder Morgan warrants, and a cash portion of $11.5 billion through Barclays borrowing. [15]
On August 10, 2014, Kinder announced it was moving to full ownership of its partially owned subsidiaries Kinder Morgan Energy Partners, Kinder Morgan Management, and El Paso Pipeline Partners in a deal worth $71 billion. [16] The transaction closed on November 26, 2014. [17] Prior to November 26, 2014, the Kinder Morgan group publicly traded companies included Kinder Morgan, Inc. (NYSE: KMI), Kinder Morgan Energy Partners, L.P. (NYSE: KMP), Kinder Morgan Management, LLC (NYSE: KMR) and El Paso Pipeline Partners, L.P. (NYSE: EPB); a merger transaction combined all under Kinder Morgan, Inc. (NYSE: KMI), on November 26, 2014. [18]
On December 23, 2013, Kinder Morgan announced that, through its Kinder Morgan Energy partner subsidiary, it would acquire the US oil tanker operator American Petroleum Tankers and its affiliated company SCT (State Class Tankers) from the US private equity investment firms Blackstone Group and Cerberus Capital Management. APT operates a fleet of five US-flagged MR 50,000 tons—330,000 barrels—oil tankers and has four other similar tankers on order from the General Dynamics shipbuilding company NASSCO in California. This acquisition appears to be the first case whereby a pipeline operator will also be able to offer marine transportation. [19]
This acquisition would facilitate the export of US natural resources to overseas markets, and Kinder Morgan had lined up several LNG export customers by July 2014. [20]
During the 2021 Texas power crisis, Kinder Morgan posted a nearly $1 billion one-time net profit after the company voluntarily cut back on its own power (saving $116 million) and sold natural gas to electric utility companies at high prevailing prices (gaining $880 million). [21] An analyst at Mizuho Securities said Kinder Morgan "was not really on anyone’s list of potential winners from Winter Storm Uri. Shame on us [for not seeing it]." [21] Most of the extra gas Kinder Morgan sold went to electric utility companies whose usual non-Kinder suppliers had shut down or blacked out as the catastrophe intensified. [21] Possible long-term ramifications of the storm may be that utilities pay more to guarantee uninterrupted gas deliveries from Kinder Morgan instead. [21]
El Paso Corporation was purchased in 2012 with subsidiaries:
Kinder Morgan owns or operates approximately 83,000 miles (134,000 km) of pipelines transporting primarily natural gas, crude oil, and petroleum products. [25]
In Canada, Kinder Morgan operated (before being bought out by Canada's government) the Trans Mountain oil pipeline which links Alberta with Vancouver, British Columbia, as well as the Cochin pipeline between Western Canada and the American Midwest.
In 2013, Kinder Morgan filed its application to the Canadian National Energy Board (NEB) for building a second pipeline roughly parallel to the existing Trans Mountain, for transporting diluted bitumen between Edmonton, Alberta, and Burnaby, British Columbia. The new pipeline would nearly triple the transportation capacity from 300,000 to 850,000 barrels per day, for an estimated investment of $6.8 billion. [26] This expansion would enable the export of larger volumes of Alberta's bituminous sands oil to the U.S. and to Asian countries. [27]
The expansion project had support from the energy industry but opposition from First Nations among environmentalists and others. Protests started in 2014 [28] and were continuing in the spring of 2018. [29] The Liberal Party of Canada controlled Canadian government then purchased TransMountain from Kinder Morgan for C$4.5 billion to make it a government-run public works project in an effort to save the pipeline from environmental and political opposition. [8] [30]
This high-pressure 30-inch (762 mm) gas transmission pipeline, proposed in 2014, was slated to pass from Wright, New York to Dracut, Massachusetts, to help alleviate New England’s high natural gas and electricity costs caused, in their estimation, by severely limited natural gas transportation capacity currently serving that region. [31] But in 2016, Kinder Morgan suspended its effort to build the 412-mile (663 km) NED pipeline, citing economic difficulties and lack of distribution commitments for the gas. [32]
Likewise, Kinder Morgan's proposed Palmetto Pipeline, designed to go from the Gulf Coast to the Southeast markets, was nixed. Its path would have taken it through 201 miles (323 km) of eastern and coastal Georgia, and drew opposition from local residents and environmental groups. The company suspended work on the project after the Georgia General Assembly passed a temporary moratorium on the use of eminent domain for pipeline construction, and commissioned a study to review the project. [33] The company filed an appeal. [34]
Kinder Morgan proposed a 13 miles (21 km) long 36-inch (914 mm) diameter high-pressure natural gas storage loop which would include a 4 miles (6.4 km) pipeline spur through Sandisfield, Massachusetts, crossing the Otis State Forest and using water from Spectacle Pond. The company invoked the U.S. Natural Gas Act to have the needed land condemned so they could seize it by eminent domain. [35] However, the Commonwealth of Massachusetts challenged Kinder Morgan in court, arguing that the state constitution's Article 97, which protects designated conservation land, forbids construction of a pipeline through protected lands. [36]
In late summer 2019, Kinder Morgan, EagleClaw Midstream and Altus Midstream Processing launched construction on the Permian Highway Pipeline, a 430-mile pipeline that will carry up to 2.1 billion cubic feet of natural gas from the Waha Hub in Pecos County, Texas, to the Gulf Coast. [37] The pipeline would create 2,500 construction jobs and 18 permanent jobs, raise $42 million in additional yearly tax revenues for state and local authorities, and was planned to enter operation in 2021. [37]
In 2009, the Pipeline and Hazardous Materials Safety Administration (PHMSA) cited Kinder Morgan for violating safety standards regarding the distance between a natural gas pipeline and a "high consequence area" such as a school or hospital; the pipeline was too close for safe operation in case of a leak. [38]
In 2011, PHMSA cited Kinder Morgan for failing to maintain update maps showing pipeline locations, test pipeline safety devices, maintain firefighting equipment, inspect its pipelines as required, and adequately monitor pipes’ corrosion levels. [39] Also in 2011, the U.S. Department of Transportation cited Kinder Morgan for violations including the company's failure to have and follow written startup and shutdown procedures, and failing to have or use other measures to detect abnormal operating conditions, and proposed a fine of $425,000. [40] [41] [42]
The 2013 Wall Street Journal article "Is Kinder Morgan Scrimping on its Pipelines?" noted that one investment analyst claimed the company was deferring maintenance spending in order to return more cash to its investors. [43]
PHMSA's incident reports for Kinder Morgan's onshore gas transmission pipelines show that faulty infrastructure causes 45% of the significant leaks. Failure of the pipe, cracked welds, and faulty pipeline equipment together account for 28% of pipeline leaks, and corrosion of the pipe causes 17%. [44]
In Texas from 2003 to 2016, Kinder Morgan experienced at least 48 "significant incidents" resulting in fatalities or hospitalization, fires, explosions, or spills. [45] Throughout the U.S. from 2003 to 2016, Kinder Morgan and its subsidiaries' pipelines (of all kinds) were responsible for more than 400 incidents in 24 states, incurring more than 110 federal enforcement actions. Kinder Morgan's natural gas transmission pipeline accidents caused $224 million in property damage. [46]
In July 2007, a Kinder Morgan pipeline got ripped open by an excavator, spilling more than 250,000 liters of oil into a Burnaby neighborhood and 70,000 liters into nearby Burrard Inlet. [47] The crude oil utterly carpeted cars, houses, roads, and lawns. About 250 people had to be evacuated and the spill cost $15 million to clean.
An August 15, 2021 pipeline rupture near Coolidge, Arizona left two dead and one severely burned. [48]
Enbridge Inc. is a multinational pipeline and energy company headquartered in Calgary, Alberta, Canada. Enbridge owns and operates pipelines throughout Canada and the United States, transporting crude oil, natural gas, and natural gas liquids, and also generates renewable energy. Enbridge's pipeline system is the longest in North America and the largest oil export pipeline network in the world. Its crude oil system consists of 28,661 kilometres of pipelines. Its 38,300 kilometre natural gas pipeline system connects multiple Canadian provinces, several US states, and the Gulf of Mexico. The company was formed by Imperial Oil in 1949 as the Interprovincial Pipe Line Company Limited to transport Alberta oil to refineries. Over time, it has grown through acquisition of other existing pipeline companies and the expansion of their projects.
Kinder Morgan Energy Partners LP (NYSE: KMI) (KMEP) is a subsidiary of Kinder Morgan, Inc. The company, which is classified as an oil and gas master limited partnership (MLP), owns or operates petroleum product, natural gas, and carbon dioxide pipelines, related storage facilities, terminals, power plants and retail natural gas in the United States and Canada.
TC Energy Corporation is a major North American energy company, based in the TC Energy Tower building in Calgary, Alberta, Canada, that develops and operates energy infrastructure in Canada, the United States, and Mexico. The company operates three core businesses: Natural Gas Pipelines, Liquids Pipelines and Energy.
The Calnev Pipeline is a 550-mile (890 km) long buried refined oil products pipeline in the United States, owned by Kinder Morgan Energy Partners. The pipeline consists of two parallel lines, the larger, has a diameter of 14 inches (360 mm) and the smaller one has a diameter of 8 inches (200 mm). The lines carry gasoline, jet fuel, and diesel fuel from Los Angeles, California, refineries as far as Nellis Air Force Base south of North Las Vegas, Nevada. It carries approximately 128,000 barrels per day (20,400 m3/d). Jet fuel from the pipeline is also delivered to the Harry Reid International Airport tank farm in Paradise. Additional terminal facilities are located in Barstow, California.
Natural Gas Pipeline Company of America (NGPL) is a natural gas pipeline company. It owns pipelines which bring natural gas from the Texas Permian Basin and Gulf of Mexico into the Chicago area. It has had several corporate owners over the past century, and is owned by Kinder Morgan, Brookfield Infrastructure Partners, and ArcLight Capital Partners.
Tennessee Gas Pipeline (TGPL) is a set of natural gas pipelines that run from the Texas and Louisiana coast through Arkansas, Mississippi, Alabama, Tennessee, Kentucky, Ohio, and Pennsylvania to deliver natural gas in West Virginia, New Jersey, New York, and New England. The 11,900-mile (19,200 km) long system is operated by the Tennessee Gas Pipeline Company, a subsidiary of Kinder Morgan. It is one of the largest pipeline systems in the United States. Its FERC code is 9. TGP's PHMSA pipeline operator i.d. is 19160.
Trailblazer Pipeline is a natural gas pipeline that brings natural gas from Colorado into Nebraska, where the pipeline joins the NGPL. It is owned by Tallgrass Energy Partners, LP is a private master limited partnership (MLP) headquartered in Overland Park, KS. On August 17, 2012, Tallgrass entered into a purchase and sale agreement with Kinder Morgan Energy Partners, L.P. to buy Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, and KMP's 50 percent interest in the Rockies Express Pipeline. Tallgrass closed this acquisition on November 13, 2012. Its FERC code is 68.
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Natural-gas processing is a range of industrial processes designed to purify raw natural gas by removing contaminants such as solids, water, carbon dioxide (CO2), hydrogen sulfide (H2S), mercury and higher molecular mass hydrocarbons (condensate) to produce pipeline quality dry natural gas for pipeline distribution and final use. Some of the substances which contaminate natural gas have economic value and are further processed or sold. Hydrocarbons that are liquid at ambient conditions: temperature and pressure (i.e., pentane and heavier) are called natural-gas condensate (sometimes also called natural gasoline or simply condensate).
The Pipeline and Hazardous Materials Safety Administration (PHMSA) is a United States Department of Transportation agency created in 2004, responsible for developing and enforcing regulations for the safe, reliable, and environmentally sound transportation of energy and other hazardous materials. It is in charge of overseeing about 3.4 million miles of pipelines - accounting for 65% of the energy consumed in the U.S. - and regulating the nearly 1 million daily shipments of hazardous materials by land, sea, and air. This includes pipelines carrying carbon dioxide Carbon capture and utilization). PHMSA's safety programs are housed in the Office of Pipeline Safety (OPS) and the Office of Hazardous Materials Safety (OHMS). PHMSA is headquartered in Washington, D.C.
Petroleum has been a major industry in the United States since the 1859 Pennsylvania oil rush around Titusville, Pennsylvania. Commonly characterized as "Big Oil", the industry includes exploration, production, refining, transportation, and marketing of oil and natural gas products. The leading crude oil-producing areas in the United States in 2023 were Texas, followed by the offshore federal zone of the Gulf of Mexico, North Dakota and New Mexico.
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Copano Energy, L.L.C. is a national natural gas distributor and supplier in the U.S. The company operates over 6,800 miles of natural gas transmission pipelines, with 2.7 billion cubic feet of natural gas processing capability, and 10 natural gas plants, with 1 billion cubic feet of natural gas processing capability. The served areas of the company include many states including Texas, Oklahoma and Wyoming.
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