East Daley Analytics recently reported on the Energy Transfer (ET) South Mississippi and Kinder Morgan (KMI) Mississippi Crossing (MSX) projects. Outside our equity coverage, Boardwalk Pipelines is also pursuing a major expansion, the Kosci Junction, aimed at serving growing natural gas demand in Southeast markets.
Kosci Junction is a proposed greenfield pipeline that would extend east from the existing Greenville Lateral on Texas Gas Transmission (TGT). The pipe would travel 80 miles to Clarke County, MS to an interconnect with Southern Natural Gas (Sonat), and an additional 18-mile segment would deliver gas into the Gulf South mainline near Destin Pipeline.
According to the open season documents, Boardwalk is engaged with an anchor shipper for 600 MMcf/d of the Kosci Junction’s 1.5 Bcf/d of capacity. If successfully commercialized, Boardwalk is targeting a project in-service of April 1, 2029.
Kosci Junction directly competes with KMI’s MSX project on Tennessee Gas Pipeline. As shown on the map, MSX would travel the same distance as the Greenville Lateral on TGT before turning southeast and following a similar path as the proposed Kosci Junction.
These expansions could potentially draw supply from several basins, including the Haynesville, Anadarko, Northeast and Permian. East Daley tracks and forecasts flows through the Gulf Coast region in the monthly Southeast Gulf Supply & Demand Report.
KMI and Boardwalk both held binding open seasons ending November 1. The results of these open seasons may reveal both projects to be commercially viable; but if only one survives, the competition will come down to shipping economics.
The minimum rate posted on the Kosci Junction project is $0.42/Dth/day. This rate is in line with current negotiated rates on KMI’s Midcontinent Express, which have a weighted average of ~$0.44/Dth/day. Midcontinent Express provides transport between similar markets as the KMI and Boardwalk projects, so EDA views the negotiated rates on this pipeline as a good proxy for the transportation path.
We suspect the Boardwalk project can support a lower rate because the construction costs for Kosci Junction should be lower than KMI’s. EDA estimates the MSX project will span about double the pipeline distance as the Kosci Junction. – Zach Krause Tickers: ET, KMI.
Dirty Little Secrets Part 2 : Take Me to the Gulf
In Part 2 of our exclusive series, East Daley dives into the Gulf Coast — where upstream production and downstream infrastructure converge, creating a volatile and opportunity-rich environment. With daily production shifts in crude, natural gas and NGLs, understanding how these commodities interact is key to uncovering hidden profit potential. Register here to join us.
Sign Up for the NGL Insider
East Daley NGL Insider provides weekly updates on the US NGLs market including supply and demand fundamentals, basin-level views, and analysis of market constraints and infrastructure proposals. We explore sub-basin dynamics and provide market insights on NGL flows, infrastructure, and purity products. Sign up now for the NGL Insider.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.
