Entergy Texas reached a landmark transportation agreement with Kinder Morgan to secure natural gas supply, supporting the rapid industrial, commercial and residential growth in the region.
The arrangement, which was developed in collaboration with Golden Pass LNG, is part of Kinder Morgan's $1.7 billion Trident Intrastate Pipeline project. The 216-mile project will transport Permian Basin and other natural gas supply at the Katy hub to the LNG and industrial corridor near Port Arthur, Texas, delivering additional diverse supply to growing and currently-constrained areas.
"This strategic partnership demonstrates our commitment to delivering long-term value for our customers and communities," said Eliecer Viamontes, president and CEO of Entergy Texas. "The agreement also serves as a critical component for our Southeast Texas Energy Plan (or STEP Ahead plan). By securing a reliable and sustainable fuel supply, we are building the foundation for a stronger energy future."
The agreement brings several key benefits to the region that are incorporated into Entergy Texas' STEP Ahead plan:
- Lower costs for customers: By accessing competitive natural gas markets through the Katy hub, Entergy Texas can pass fuel savings directly to its customers.
- Reliable energy for the future: This partnership ensures a steady supply of natural gas for the company's proposed Legend and Lone Star Power Stations, supporting Southeast Texas' growing energy needs.
- Enhanced flexibility and resiliency: The new pipeline enhances Entergy Texas' ability to adapt and maintain reliable operations across nearly all of its power plants, including the company's Spindletop underground natural gas storage caverns.
- Fueling economic growth: This collaboration unlocks further economic development expansion in the region.
The Trident Intrastate Pipeline is expected to be operational in early 2027, aligning with the start of major industrial projects in Southeast Texas. Once completed, the pipeline is expected to transport approximately 1.5 billion cubic feet per day of natural gas, with possible expansion opportunities up to 2.8 billion cubic feet per day, ensuring reliable energy supply for decades to come.
"We are pleased to support our customers' growing needs for natural gas," said Sital Mody, KMI Natural Gas President. "We believe our Trident Intrastate Pipeline project is critical to meeting rising power, industrial and LNG demand in Texas and are excited to work with Entergy Texas and Golden Pass LNG as we continue to provide reliable and affordable energy solutions to the state."
"This strategic project enhances Golden Pass LNG's access to a reliable supply of natural gas for our LNG terminal and helps us achieve our mission to be the premier supplier of LNG from North America," said Jeff Hammad, Chief Commercial Officer for Golden Pass LNG.
