Kinder Morgan (KMI) kicked off earnings season with the Elba Express Bridge project announcement. The 71-mile extension into South Carolina is backed by agreements for 325 MMcf/d of capacity and is expandable to 1 Bcf/d.
East Daley Analytics believes the anchor shipper is likely Santee Cooper, Duke Energy, or Dominion Energy. KMI expects the Bridge project to enter service in 2Q30 at a $431MM price tag.
Santee Cooper stands out as a potential backer after issuing roughly $1B in bonds to fund capital investments and refinance debt. The 2030 in-service date also aligns with the utility’s plan to retire the coal-powered Winyah Generation Station.
KMI management noted that South Carolina is one of the fastest growing markets for natural gas. The initial 325 MMcf/d of capacity establishes a platform that can easily scale as demand materializes, including potential data center load.
Although data centers have generated significant buzz, this expansion appears driven primarily by traditional residential and industrial growth. East Daley’s Data Center Demand Monitor tracks only about 860 MW of projects in South Carolina (see figure from the Data Center dashboard).
The 30-year contract signals a more stable demand outlook than a typical deal for data centers. Many developers view gas as a bridge fuel while building out alternative energy portfolios. For example, Williams (WMB) has inked only 10-year agreements to back its Socrates data center project.
By adding a competing route to Williams’ (WMB) Transcontinental pipeline, the Bridge project offers South Carolina consumers greater optionality to source gas. The long-dated contracts and scalable design make it a strategic addition to KMI’s project backlog. – Zach Krause Tickers: KMI, WMB.
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