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

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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.

Entergy Texas ha annunciato un importante accordo di trasporto con Kinder Morgan e Golden Pass LNG come parte del progetto da 1,7 miliardi di dollari Trident Intrastate Pipeline di Kinder Morgan. Il gasdotto di 216 miglia trasporterà gas naturale dal Bacino Permiano al corridoio LNG e industriale vicino a Port Arthur, Texas.

Il progetto, previsto per diventare operativo all'inizio del 2027, trasporterà circa 1,5 miliardi di piedi cubi di gas naturale al giorno, con una potenziale espansione a 2,8 miliardi di piedi cubi. I principali vantaggi includono costi inferiori per i clienti grazie all'accesso a mercati competitivi presso il centro di Katy, una fornitura energetica affidabile per le proposte delle centrali elettriche Legend e Lone Star, una maggiore flessibilità operativa che comprende le caverne di stoccaggio sotterranee di Spindletop e supporto per lo sviluppo economico regionale.

Entergy Texas ha anunciado un importante acuerdo de transporte con Kinder Morgan y Golden Pass LNG como parte del proyecto de Trident Intrastate Pipeline de Kinder Morgan, que asciende a 1.7 mil millones de dólares. El gasoducto de 216 millas transportará gas natural desde la Cuenca Pérmica hacia el corredor de LNG e industrial cerca de Port Arthur, Texas.

Se espera que el proyecto esté operativo a principios de 2027 y transportará aproximadamente 1.5 mil millones de pies cúbicos de gas natural diariamente, con una posible expansión a 2.8 mil millones de pies cúbicos. Los beneficios clave incluyen costos más bajos para los clientes gracias al acceso a mercados competitivos en el centro de Katy, un suministro de energía confiable para las propuestas de las plantas de energía Legend y Lone Star, mayor flexibilidad operativa que incluye las cavernas de almacenamiento subterráneas de Spindletop, y apoyo al desarrollo económico regional.

Entergy TexasKinder MorganGolden Pass LNG와 함께 Trident Intrastate Pipeline 프로젝트의 일환으로 17억 달러 규모의 중요한 운송 계약을 발표했습니다. 216마일 길이의 파이프라인은 퍼미안 분지에서 텍사스 포트 아서 근처의 LNG 및 산업Corridor로 천연가스를 운송합니다.

2027년 초에 운영될 것으로 예상되는 이 프로젝트는 매일 약 15억 입방피트의 천연가스를 운송하며, 28억 입방피트로의 확장 가능성도 있습니다. 주요 이점으로는 Katy 허브의 경쟁 시장에 대한 접근을 통한 고객 비용 절감, 제안된 Legend 및 Lone Star 발전소를 위한 신뢰할 수 있는 에너지 공급, Spindletop 지하 저장 동굴을 포함한 운영 유연성 향상, 그리고 지역 경제 개발 지원이 있습니다.

Entergy Texas a annoncé un accord de transport significatif avec Kinder Morgan et Golden Pass LNG dans le cadre du projet Trident Intrastate Pipeline de Kinder Morgan, d'une valeur de 1,7 milliard de dollars. Le pipeline de 216 miles transportera du gaz naturel du bassin permien vers le couloir LNG et industriel près de Port Arthur, au Texas.

Le projet, qui devrait être opérationnel début 2027, transportera environ 1,5 milliard de pieds cubes de gaz naturel par jour, avec une possibilité d'expansion à 2,8 milliards de pieds cubes. Les principaux avantages incluent des coûts réduits pour les clients grâce à l'accès à des marchés compétitifs au hub de Katy, un approvisionnement énergétique fiable pour les centrales électriques Legend et Lone Star proposées, une flexibilité opérationnelle accrue incluant les cavernes de stockage souterrain de Spindletop, et un soutien au développement économique régional.

Entergy Texas hat eine bedeutende Transportvereinbarung mit Kinder Morgan und Golden Pass LNG im Rahmen des 1,7 Milliarden Dollar teuren Projekts Trident Intrastate Pipeline von Kinder Morgan angekündigt. Die 216 Meilen lange Pipeline wird Erdgas aus dem Permian Basin zum LNG- und Industriekorridor in der Nähe von Port Arthur, Texas, transportieren.

Das Projekt, das voraussichtlich Anfang 2027 in Betrieb gehen wird, wird täglich etwa 1,5 Milliarden Kubikfuß Erdgas transportieren, mit einer möglichen Erweiterung auf 2,8 Milliarden Kubikfuß. Zu den wichtigsten Vorteilen gehören niedrigere Kosten für die Kunden durch Zugang zu wettbewerbsfähigen Märkten am Katy-Hub, eine zuverlässige Energieversorgung für die geplanten Kraftwerke Legend und Lone Star, verbesserte betriebliche Flexibilität einschließlich der Spindletop-Untergrundspeicherhöhlen und Unterstützung für die regionale wirtschaftliche Entwicklung.

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.

Insights

This landmark agreement represents a strategic masterstroke for Entergy Texas, significantly strengthening its competitive position in the rapidly expanding Southeast Texas energy market. The deal provides three critical advantages: enhanced supply security, improved cost structure, and increased operational flexibility.

The partnership's timing is particularly strategic, coinciding with the massive industrial expansion in Southeast Texas's LNG corridor. Access to the Katy hub - one of the most liquid natural gas trading points in the U.S. - will provide Entergy with significant pricing advantages and enhanced supply optionality. This competitive gas sourcing, combined with the company's Spindletop storage facilities, creates a robust supply chain that can efficiently meet variable demand patterns.

The $1.7 billion Trident pipeline project represents a major infrastructure upgrade for the region, with its 1.5 billion cubic feet per day capacity providing ample headroom for growth. The potential expansion to 2.8 billion cubic feet per day indicates strong confidence in the region's long-term industrial development trajectory. This scalability is important given the surge in LNG export facilities and industrial projects in the Gulf Coast region.

The agreement's structure demonstrates sophisticated risk management, effectively addressing three key vulnerabilities: supply security, price volatility, and infrastructure constraints. By securing priority access to this new pipeline system, Entergy has positioned itself advantageously for the region's next phase of growth while creating a more resilient operational framework that can better withstand supply disruptions and demand spikes.

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.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/entergy-texas-partners-with-kinder-morgan-golden-pass-lng-to-fuel-southeast-texas-growth-302374168.html

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.

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