Kinder Morgan, the largest energy infrastructure company in North America, describes itself to investors as a mid-stream energy business primarily to transport, store and process energy commodities for a fee. This setup is typically under long-term contracts for fixed fees to avoid or minimize any commodity price exposure and to secure cash flows, which are not dependent on whether the customers use the commodity or not.
Kinder Morgan outlines the big picture for the Natural Gas Industry as now the Export market. So while Kinder Morgan has LNG facilities under long-term contracts to import, and getting demand charges and reservation charges for import, they are now investing to convert their import facilities to export. Kinder Morgan also claims they are the biggest of this current export movement; exporting 2 bcf/day into eastern Canada and into Mexico, having a $2.7 billion project backlog, and looking at 9-11 bcf on a 70 bcf/day market, looking to be exported with opportunities now in exports to Mexico and to Canada (as of March 15, 2014).
Mary Neville Wall
Warwick