Kinder Morgan has approved Permian Link, a 434-mile (700-kilometer) natural gas pipeline that will run across West Texas and the Panhandle to serve a data center complex. The project is priced at $4.2 billion, with targeted startup in late 2030 and capacity of 2.8 billion cubic feet per day.
CEO Kim Dang called the plan a "compelling opportunity," saying it would transport low-cost gas from the Permian Basin toward new data center hubs in the Panhandle. It also fits a broader wave of large Texas gas projects reaching final investment decisions in recent months as power demand for data centers rises and export terminals require supply.
Kinder says it is looking to serve multiple customers on the system. One is an "A-list hyperscaler," described as the anchor tenant that "obviously is driving the need for speed," Sital Mody, who leads the natural gas pipelines unit, said.
When infrastructure choices affect long-term planning, a quick daily read keeps you grounded, so sign up for Market Briefs today.
Kinder Morgan also approved the Southeast Connector, a 470-mile pipeline designed to move up to 2.6 billion cubic feet of gas per day. For portfolios, the through-line is clear: recent Texas pipeline approvals are tracking demand from data centers and from export terminals, and Kinder is positioning capacity toward those needs.
Because markets and projects evolve over time, get five minute clarity each morning by subscribing to the free Market Briefs newsletter.
