Kinder Morgan Inc.'s board has approved a $3.3 billion investment in its northeast energy direct project, a pipeline system aimed at carrying natural gas from northeastern shale fields to New England.
Shares of Kinder Morgan—which have fallen about 11% this year through Wednesday's close—rose about 1% in premarket trading.
The project, first proposed in 2014, will have delivery capacity of up to 1.3 billion cubic feet per day of natural gas. About 91% of the proposed pipeline is located around existing utility corridors.
Service is expected to begin November 2018.
"The demand is there and it's growing," Chief Executive Steve Kean said recently. The company had moved a portion of the project into its backlog, an indication it is feeling good about securing customer commitments and regulatory approval.
Kinder Morgan East Region Pipelines President Kimberly Watson added that the project is "specifically targeted at serving the Northeast and New England's identified future market needs." Kinder Morgan is based in Houston.
On Wednesday, the company said it would buy out Royal Dutch Shell PLC's interest in their proposed Elba Liquefaction Co. joint venture in Georgia and unveiled plans to increase its dividend. Analysts have expected Kinder Morgan to be on an M&A tear this year, snapping up pipelines and other energy infrastructure.