We’re getting additional value out of this growing trend in storage.
Jean Ann Salisbury: That makes sense. Great. And my other question was about the Wyoming Interstate projects that I saw in release. Is that basically just using currently unused capacity on WIC for the 400 MMCFD. I was wondering if there’s any material CapEx associated with that? Or it’s just – you just start moving flow on empty pipeline?
Sital Mody: Hi, Jean. This is Sital. So really, from a Kinder standpoint, we’ve got the minimal capital, mostly interconnect capital. We’ve been working with our partners for a long time on this. We see Bakken GRs rising significantly. And this is an example of a collaborative project that maximizes infrastructure that’s in existence today and on our side, very little capital.
Jean Ann Salisbury: Great. That’s all for me. Thanks.
Operator: Thank you. Our next caller is Brian Reynolds with UBS. You may go ahead, sir.
Brian Reynolds: Hi, good morning or good afternoon, everyone. Maybe to start off a little high level on Kinder’s positioning to support this 20% increase in natural gas demand by 2028 that you put in the release. It seems like Kinder is well positioned for this growth, but we could see CapEx trend higher of that $1 billion to $2 billion range. So some of these projects that are helping debottleneck the Texas, Louisiana corridor, GCX expansion and potential more Permian greenfield that’s needed. Just kind of curious, high level, can you talk about the opportunity sets that Kinder has just given Kinder’s prior comments of looking to maintain that 50% market share around LNG supply going forward? Thanks.
Kim Dang: Yes. I’ll make a couple of high-level comments about the opportunity side and then Sital and Tom can add in. I think there’s multiple opportunities on the LNG front. So you’ve got the next decade down in South Texas. So that is going to require incremental pipeline infrastructure probably. You’ve got multiple facilities coming in along the Texas, Louisiana border, and those – a lot of – some of those have existing header pipes, some of them don’t. Some of them are wanting to reach further back. As a result of the sucking sound of LNG on the Gulf Coast, you have a southeast market that is short supply. And so there’s opportunities to try to expand pipeline capacity into the Southeast to help meet some of the demand there.
There is opportunities for exports to Mexico think they’re building a number of new power plants, which don’t have supply yet, some of that’s out on the West Coast of Mexico. So there’s opportunity to serve that new power plant load. There’s also LNG facilities that are going on the West Coast of Mexico. And so there’s incremental opportunity there. In California, they’ve just announced that they’re extending the life of their natural gas facilities and they’re increasing the capacity of Aliso Canyon. And so I think people are understanding that natural gas is going to play a big role for a longer period of time than what some people out there previously thought. We’re seeing, as Tom talked through all the power demand, we’re still seeing some coal conversions to natural gas, which is driving demand.
And then there’s industrial growth on the Texas Gulf Coast. And so I think there are a number of – there are a number of different factors driving the growth, but I think most of it is in the southern market. It’s really hard to get infrastructure built into the Northeast. And so WoodMac shows 90% to 95% of the demand growth in natural gas occurring in Texas and Louisiana.
