Kinder Morgan Enters Growth Phase Driven by Electricity Demand and LNG Development
Kinder Morgan is entering a growth phase driven by electricity demand, liquefied natural gas development, and utility needs. The company's opportunity centers on contracted infrastructure, with long-term agreements serving as the bridge between supply basins and demand centers that require reliable natural gas transportation and storage.
The company's project backlog stood at $9.6 billion at the end of the second quarter of 2026, with natural gas projects accounting for about 92% of that backlog. This keeps Kinder Morgan's growth agenda focused on its largest infrastructure franchise, which is dominated by power generation and local distribution company demand.
More than 60% of the backlog supports power generation and local distribution company demand, giving Kinder Morgan a longer-duration channel tied to electric reliability, population growth, and the need for additional gas-fired generation. This theme overlaps with other midstream names, including Williams Companies (WMB) and ONEOK (OKE), which offer investors another way to evaluate natural gas infrastructure exposure.
Kinder Morgan is also developing projects to serve roughly 3 billion cubic feet per day of additional liquefied natural gas demand, sitting beside more than 10 billion cubic feet per day of power-sector demand under development across its gas pipeline network. The company's Gulf Coast position matters because export-related demand requires both pipeline takeaway and storage flexibility.