Tennessee Gas Pipeline, L.L.C. (TGP), a subsidiary of Kinder Morgan, Inc. (NYSE: KMI), has officially announced its decision to move forward with the Mississippi Crossing Project (MSX Project) after successfully securing long-term, binding transportation agreements with customers for all of the project’s capacity. This decision represents a significant step toward meeting the growing energy needs in the Southeast region and improving energy supply reliability.
According to Sital Mody, President of Natural Gas Pipelines, the MSX Project will be a game-changer for the Southeast by providing increased access to a diverse range of natural gas supply sources. “The additional supply will help satisfy growing energy demand and lower energy costs, benefiting power generators and other energy suppliers in the region,” Mody said. He emphasized that the project would foster new economic opportunities by attracting residential, commercial, and industrial customers. TGP is currently finalizing discussions with customers regarding up to 0.4 Bcf/d of additional long-term commitments, which may require further capital investment for incremental horsepower.
The MSX Project, estimated at $1.4 billion, is designed to transport up to 1.5 billion cubic feet per day (Bcf/d) of natural gas. The project will involve constructing nearly 206 miles of new pipeline, including 42-inch and 36-inch diameter lines, as well as two new compressor stations. The pipeline will originate near Greenville, Mississippi, and extend to Butler, Alabama. It will connect to TGP’s existing pipeline system, as well as third-party pipelines, thereby providing critical supply access from various natural gas supply basins across the region. If all required permits and clearances are secured, the MSX Project is expected to be in service by November 2028.
Kim Dang, CEO of Kinder Morgan, highlighted the robust growth prospects for the natural gas market, which are expected to continue over the next five years. This growth is driven by factors such as increased LNG exports, exports to Mexico, and the rising demand for natural gas in power generation. Dang stated, “With today’s announcement, KMI has sanctioned approximately $3.1 billion (KMI share) in expansion capital between the SNG South System 4 Expansion and TGP’s Mississippi Crossing Project. We expect to announce additional projects in the coming months.”
The MSX Project is part of Kinder Morgan’s broader strategy to meet the growing demand for natural gas infrastructure in the Southeast. As the region continues to experience economic expansion and a rise in energy consumption, projects like MSX are critical to ensuring the reliability and efficiency of energy delivery to both residential and commercial customers. The pipeline will enhance the region’s access to new, diverse sources of natural gas, which is essential for maintaining supply stability and supporting future economic development.
In addition to its focus on meeting regional energy demands, the MSX Project will also play a role in improving the overall sustainability of the natural gas infrastructure in the Southeast. The new pipeline and compressor stations will help reduce transportation bottlenecks, which will result in more efficient delivery of natural gas to power plants and other energy consumers. By enhancing the supply chain and boosting capacity, the project will help lower energy costs in the region, benefiting consumers and businesses alike.
The project’s timeline aims for an in-service date in late 2028, though it is contingent upon securing all necessary permits and clearances. TGP is confident that the MSX Project will play a critical role in meeting the Southeast’s long-term energy needs, while also providing significant economic benefits through job creation, infrastructure development, and enhanced regional energy security.
TGP’s commitment to proceeding with the MSX Project is a clear indication of its confidence in the future of natural gas in the Southeast. With major investments in expansion capital and continued efforts to secure long-term agreements with key customers, the MSX Project stands as a cornerstone in Kinder Morgan’s efforts to enhance the reliability, affordability, and sustainability of natural gas infrastructure across the U.S.
