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, according to a press release.
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 KMI Natural Gas President Sital Mody. “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.
Zachry receives court approval for restructuring plan
Zachry Holdings, Inc. (ZHI) announced Feb. 26 that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed the company’s Plan of Reorganization.
Having now achieved this key milestone, the company expects to successfully complete its restructuring and emerge from the court-supervised process in the coming weeks, reported on PRNewswire.com.
Under the terms of the plan, all vendors and suppliers will be paid in full.
“We initiated this process to resolve issues related to the Golden Pass LNG export terminal project, and with the court’s approval of our plan, we are ready to close this chapter and move forward,” said John B. Zachry, chairman and CEO of ZHI. “As we look to the rest of 2025 and beyond, Zachry remains committed to our traditional business values, which have served us well for over 100 years. We are excited about the growth opportunities we see ahead and look forward to a bright future.”
White & Case LLP is serving as legal advisor to ZHI, M3 Advisory Partners, LP is serving as financial and restructuring advisor, and Lazard Fréres & Co. LLC is serving as investment banker.
On May 21, 2024, ZHI and certain of its subsidiaries initiated a voluntary court-supervised Chapter 11 process that provides them with time and flexibility to resolve issues related to the Golden Pass LNG export terminal project in Sabine Pass, according to the company’s website.
On July 24, 2024, the U.S. Bankruptcy Court approved ZHI’s comprehensive settlement agreement with Golden Pass LNG. This agreement resolved all of the financial and legal disputes among the parties related to the GPX project.
