(Reuters) Kinder Morgan said its unit Tennessee Gas Pipeline will proceed with the nearly $1.4 billion Mississippi Crossing Project (MSX Project), strengthening the pipeline operator's position in the Southeast U.S. markets.
Shares of the company rose 2.4% to $26.44 in afternoon trade.
The project is designed to transport up to 1.5 billion cubic feet per day (Bcf/d) of natural gas and involves the construction of nearly 206 miles of pipeline, the company said.
The project will originate near Greenville, Mississippi, and end near Butler, Alabama, with connections to the existing Tennessee Gas Pipeline (TGP) system and third-party pipelines, the company added.
"KMI has sanctioned about $3.1 billion (KMI shares) in expansion capital between the SNG South System 4 Expansion and TGP's Mississippi Crossing Project...expect to announce additional projects in the coming months." said Kinder Morgan CEO Kim Dang.
The project is expected to be operational in November 2028.
Meanwhile, Natural Gas Pipelines president Sital Mody added, "We are in final discussions with customers for up to an additional 0.4 Bcf/d of long-term commitments."
In November, U.S. natural gas producers said they will boost production in 2025 following a series of production cuts this year, as rising demand from liquefied natural gas export plants is expected to increase prices.
