Did Kinder Morgan Inc. Just Put Enterprise Products Partners' Latest Growth Project on Ice?

The Permian Basin in western Texas and southwest New Mexico holds a treasure trove of oil. However, along with that crude, producers are finding the basin to be a prolific source of natural gas. In fact, according to an estimate from IHS Markit, gas output from the Permian will jump from an average of 6 billion cubic feet per day (Bcf/d) last year up to more than 14 Bcf/d by 2026. That surge in output represents a massive opportunity for pipeline companies, which are racing to be the first to build a new line out of the region.

Three have already proposed new gas pipeline projects, including Enterprise Products Partners (NYSE: EPD), Kinder Morgan (NYSE: KMI), and NAmerico Partners, which is a private equity-backed company. However, Kinder Morgan appears to be the front-runner to build the next pipeline after announcing a joint venture with leading Permian processing companies Targa Resources (NYSE: TRGP) and DCP Midstream (NYSE: DCP). As a result, it seems increasingly less likely that Enterprise Products Partners will move forward with its proposed project anytime soon.

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Source: Fool.com