By Stephen Nakrosis

Energy infrastructure company Kinder Morgan said the landscape for natural gas continues to be favorable, even amid tariffs and the potential for economic downturn.

On the outlook for business and the economy:

While the economy is going through a turbulent time history has shown the company is largely insulated against temporary volatility.

"We see a bright future based on robust market fundamentals combined with regulatory relief and a commitment to expediting energy infrastructure projects at the federal level," Executive Chairman Richard Kinder said.

On the outlook for natural gas:

Kim Dang, the company's chief executive officer, said first quarter U.S. domestic natural gas production volumes were the highest on record, as demand grew by 6.8 billion cubic feet per day. Dang added that for the second year in a row, the U.S. set a first quarter demand record.

Dang said the company's analysis indicates potential demand for U.S. natural gas is projected to grow between 20-28 Bcf/d by the end of the decade.

"Our project backlog also reflects this strong natural gas demand. At the end of the first quarter of 2025, the backlog stood at $8.8 billion, net of approximately $225 million in projects placed in service," Dang said.

On the affect of tariffs:

"Of course there has been a lot of attention on tariffs, particularly those on steel, and how they might impact project economics. At this point, we do not believe that the tariffs will have a significant impact on project economics," Dang said.

Kinder Morgan has taken steps to mitigate the potential impact by preordering critical project components, negotiating caps on cost increases, and securing domestic steel and mill capacity for larger projects. "For these projects, we have locked in the cost of the finished steel pipe and less than 10% is exposed to tariffs," Dang said.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

April 16, 2025 17:52 ET (21:52 GMT)

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