SpaceX Wants a 32-Mile Pipeline Tied Into Energy Transfer's and Kinder Morgan's Florida System. Does It Matter for Either Pipeline Stock?
SpaceX's deal puts a spotlight on Energy Transfer and Kinder Morgan.
On October 6, the Florida Public Service Commission authorized SpaceX's subsidiary, Coastal Connect Services, to build a 32-mile pipeline connecting its Cape Canaveral site with the Florida Gas Transmission Network operated by Kinder Morgan and Energy Transfer. This pipeline will enable SpaceX to secure fuel for its Starship rocket launches using the existing natural gas pipeline network instead of relying on frequent truck deliveries of liquefied natural gas.
SpaceX will construct and own the pipeline, while Kinder Morgan and Energy Transfer will benefit from interconnection and offtake agreements. Despite the significance of this deal for SpaceX's future launch plans, it represents a relatively small portion of both Kinder Morgan's and Energy Transfer's extensive pipeline infrastructures, which together account for roughly 70% of the U.S. natural gas supply.
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