Advertisement
Canada markets open in 7 hours 24 minutes

  • S&P/TSX

    21,885.38
    +11.66 (+0.05%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • CAD/USD

    0.7330
    +0.0007 (+0.09%)
     

  • CRUDE OIL

    84.01
    +0.44 (+0.53%)
     

  • Bitcoin CAD

    88,040.63
    +400.46 (+0.46%)
     

  • CMC Crypto 200

    1,390.28
    -6.25 (-0.45%)
     

  • GOLD FUTURES

    2,349.90
    +7.40 (+0.32%)
     

  • RUSSELL 2000

    1,981.12
    -14.31 (-0.72%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • NASDAQ futures

    17,770.00
    +202.50 (+1.15%)
     

  • VOLATILITY

    15.37
    -0.60 (-3.76%)
     

  • FTSE

    8,078.86
    +38.48 (+0.48%)
     

  • NIKKEI 225

    37,976.04
    +347.56 (+0.92%)
     

  • CAD/EUR

    0.6830
    +0.0009 (+0.13%)
     

Kinder Morgan (KMI) Set to Bring 7th Elba LNG Train Online

Zacks Equity Research
·2 min read

Kinder Morgan, Inc. KMI recently asked for regulatory permission to bring the seventh liquefaction train online at the Elba Island liquefied natural gas (LNG) export facility in Georgia, per Reuters.

The $2-billion facility’s construction process started on Nov 1, 2016 after receiving project authorizations from the regulatory body on Jun 1. The company has six units running at the site with a liquefying capacity of 0.3 MTPA per unit. The Unit 7 is at the commissioning stage. Kinder Morgan is seeking FERC approval to bring Train 8 into service. Notably, all the 10 units are expected to come online by the end of this summer. The company has Royal Dutch Shell plc RDS.A as a long-term client of the project.

Notably, the LNG export market has sustained a hit from weak energy demand that stemmed from coronavirus-induced lockdowns and travel bans. Several LNG exporters have witnessed cargo cancellations from their clients during this unprecedented period. The situation has led to lower utilization at terminals.

In fact, Kinder Morgan’s Elba facility has not exported a cargo since January. Cheniere Energy, Inc. LNG operates the Sabine Pass facility in Louisiana and Corpus Christi unit in Texas, which have witnessed similar market volatility and observed lower gas deliveries. However, some terminals are experiencing better utilization. Recently, Sempra Energy’s SRE Cameron LNG in Louisiana and Dominion Energy's Cove Point facility in Maryland have observed high feed gas deliveries.

ADVERTISEMENT

Before the pandemic, the United States was expected to become the world’s biggest LNG exporter by 2024. Currently, the export capacity stands at 9.7 billion cubic feet per day (Bcfd). The LNG export capacity was expected to increase to 9.8 Bcfd by the end of this year and 10.5 Bcfd next year.

Zacks Rank & Price Performance

Currently, Kinder Morgan has a Zacks Rank #3 (Hold). The company’s shares have declined 1.1% over the past three months against 9.6% rise of the industry it belongs to.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Sempra Energy (SRE) : Free Stock Analysis Report
 
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
 
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
 
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research