Entergy Texas partners with Kinder Morgan, Golden Pass LNG to fuel Southeast Texas growth

Rhea-AI Summary

Entergy Texas has announced a significant transportation agreement with Kinder Morgan and Golden Pass LNG as part of Kinder Morgan's $1.7 billion Trident Intrastate Pipeline project. The 216-mile pipeline will transport natural gas from the Permian Basin to the LNG and industrial corridor near Port Arthur, Texas.

The project, expected to be operational in early 2027, will transport approximately 1.5 billion cubic feet of natural gas daily, with potential expansion to 2.8 billion cubic feet. Key benefits include lower customer costs through access to competitive markets at the Katy hub, reliable energy supply for proposed Legend and Lone Star Power Stations, enhanced operational flexibility including the Spindletop underground storage caverns, and support for regional economic development.

Positive

• Secures reliable natural gas supply for future power stations
• Expected to reduce fuel costs for customers through competitive market access
• Pipeline capacity of 1.5 billion cubic feet per day with expansion potential to 2.8 billion
• Enhances operational flexibility across power plants

Negative

• None.

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Fuel supply agreement strengthens reliability, lowers costs, and powers growth

THE WOODLANDS, Texas, Feb. 11, 2025 /PRNewswire/ -- 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.  

For more information about Entergy Texas' Southeast Texas Energy Plan and its vision for the future, visit www.entergytexasstepahead.com.

About Entergy Texas
Entergy Texas, Inc. provides electricity to approximately 512,000 customers in 27 counties. Its customers are connected to the Midcontinent Independent System Operator Inc. power grid, which is a regional transmission organization responsible for administering the transmission systems of member utilities in 15 states stretching across the central region of the United States and Manitoba, Canada. Entergy Texas is a subsidiary of Entergy Corporation (NYSE: ETR), a Fortune 500 electric company. Entergy powers life for 3 million customers through its operating companies in Arkansas, Louisiana, Mississippi and Texas. We're investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. For the latest news from Entergy Texas, visit the Newsroom and connect with @EntergyTX on social media.  

About Kinder Morgan, Inc.
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America.  Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of the people, communities and businesses we serve. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, 702 Bcf of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.1 Bcf per year with an additional 0.8 Bcf in development. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO₂, renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks.  Learn more about our work advancing energy solutions on the lower carbon initiatives page at www.kindermorgan.com.

About Golden Pass LNG
For more information about Golden Pass LNG, visit: www.goldenpasslng.com.

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SOURCE Entergy Corporation

FAQ

When will the Trident Intrastate Pipeline project be operational for ETR?

The Trident Intrastate Pipeline is expected to be operational in early 2027.

What is the capacity of the new ETR-Kinder Morgan pipeline project?

The pipeline will transport 1.5 billion cubic feet per day of natural gas, with possible expansion up to 2.8 billion cubic feet per day.

How long is the new ETR Trident Intrastate Pipeline?

The pipeline project spans 216 miles, connecting the Permian Basin to the Port Arthur, Texas area.

What is the total investment in the ETR-Kinder Morgan pipeline project?

The Trident Intrastate Pipeline project represents a $1.7 billion investment.

How will the new pipeline agreement benefit ETR customers?

Customers will benefit from lower costs through access to competitive natural gas markets at the Katy hub, with fuel savings passed directly to customers.