Kinder Morgan Inc. (KMI) has taken final investment decision (FID) on its Southeast Connector and Permian Link natural gas pipeline projects. Southern Natural Gas (SNG), a KMI subsidiary, secured sufficient long-term, take-or-pay transportation agreements with shippers to proceed with Southeast Connector, designed to transport up to 2.6 bcfd through about 470 miles of new pipeline. Subject to receipt of required permits and approvals, service is expected to begin in phases starting fourth-quarter 2030. The $3.1-billion project could be expanded if demand warrants. “Large-load interconnection requests across the Southeast now exceed 200 Gw,” said KMI chief executive officer and director Kimberly Dang in the company’s earnings call, noting that this could represent roughly 8 bcfd of natural gas demand if it all came to fruition and if it was all served by gas-fired generation. Natural Gas Pipeline Co. of America (NGPL), another KMI subsidiary, reached FID on the 2.8-bcfd Permian Link. Estimated cost of the project is $4.2-billion, of which KMI’s share is expected to be about $1.6 billion. The 434-mile pipeline will serve new power generation for an A-rated hyperscaler and is supported by long-term, take-or-pay transportation agreements. NGPL expects to place the project in service third-quarter 2030, subject to required permits and approvals. KMI also sanctioned the second and third phases of its Creekside Lateral project in central Texas, following execution of additional long-term, take-or-pay agreements with data center and industrial customers. The company has now contracted 750 MMcfd of the system’s 1.3-bcfd design capacity, with potential for future expansion to more than 2 bcfd. KMI expects to place the project in service in phases, beginning fourth-quarter 2026 and continuing throught fourth-quarter 2027, subject to permits and approvals. SNG and Tennessee Gas Pipeline (TGP), meanwhile, took FID on the 10-bcf Bear Creek Storage Expansion project, to be used by

The block was awarded through Neuquén Province’s Ronda 1/2026 licensing round, conducted by provincial energy company Gas y Petróleo del Neuquén (GyP). GeoPark plans to advance the block through a phased appraisal program beginning with the drilling and completion of two horizontal wells, followed by extended testing to evaluate productivity and resource quality. Future appraisal and development spending will depend on technical results and project economics, the company said. Corralera NE lies near Rincón de los Sauces in the northern Vaca Muerta trend. The award adds about 26,900 gross acres (24,200 net acres) to GeoPark’s portfolio at a total committed cost, including the entry bonus, of about $95 million. GeoPark estimates the block contains about 200 MMboe of unrisked gross resource potential based on two landing zones, with additional upside from two further prospective horizons. The company said potential gross peak production from the initial two landing zones could reach 40,000-50,000 boe/d, subject to successful appraisal and development.

Valero Energy Corp. has completed the $230-million fluid catalytic cracking (FCC) unit optimization project on schedule and within budget at its 340,000-b/d St. Charles refinery in Norco, St. Charles Parish, La., about 25 miles west of New Orleans, the San Antonio-based operator said in reporting its third-quarter 2026 earnings on Oct. 22. The FCC upgrade enhances the refinery’s ability to produce higher-value products, particularly alkylate and gasoline, positioning the site to capture premium margins as refining fundamentals remain underpinned by limited global capacity additions, Valero said. Originally announced in 2021 as part of Valero’s long-term capital allocation strategy, the St. Charles FCC unit optimization is now operational and anticipated to strengthen the refinery’s competitive position in heavy crude processing and product slate optimization. In its April presentation to investors, Valero said the FCC project was to include installation of a new compressor and upgrading of existing equipment to achieve an incremental 15,000-b/d FCC throughput rate using residual feedstock. The project aims to improve product yields to increase the refinery’s incremental production of propylene by 3,000 b/d to fill the site’s downstream alkylation unit capacity to produce an incremental 6,000 b/d of high-value alkylate. The FCC upgrade is also anticipated to yield an 8,000-b/d Incremental production of gasoline, according to the April presentation. Completion of the FCC project marks a strategic milestone for Valero as the company delivered third-quarter 2026 results underscored by exceptional financial performance and operational execution. Valero reported net income of $6.8 billion for the third quarter, compared with $1.1 billion during the same period a year earlier. Adjusted net income for the quarter was $6.8 billion, which was six times higher than its $1.1-billion adjusted net income in third-quarter 2025. Refining segment powers windfall The refining segment delivered the bulk of earnings gains, with the company reporting

US refinery utilization averaged more than 95% during May–September 2026, the highest for those months since 1998, as tight global product supplies, particularly for diesel, strengthened margins, and demand for US exports, according to the US Energy Information Administration (EIA). The strong operating rates coincided with a widening profitability gap between US refiners and those in Europe and Asia. In its October Oil Market Report, the International Energy Agency (IEA) said relatively inexpensive crude supplies helped US refiners achieve record margins in September, while rising feedstock and freight costs squeezed competitors overseas. Despite elevated utilization, total US refinery output reached only its highest level since 2019. US refining capacity has declined 4% since then, limiting the output gains available from higher operating rates, EIA said. Utilization eased during the first 3 weeks of October from its summer highs, but remained above the 2021–25 seasonal average. US margins outperform IEA’s US Gulf Coast light sweet cracking margin indicator averaged $49.84/bbl in September, up $5.97/bbl from August. Heavy sour coking margins rose $11.57/bbl to $61.36/bbl, reflecting the advantage of access to lower-cost crude. By comparison, light sweet cracking margins averaged $30.15/bbl in Northwest Europe and $19.26/bbl in Singapore, down $5.97/bbl and $7.34/bbl, respectively. Medium sour cracking margins briefly turned negative in both regions during September. Record tanker freight rates widened regional crude cost differences, helping US refiners outperform competitors in Europe and Asia. IEA warned that deteriorating profitability could prompt some European refiners to reduce runs despite tight product supplies and low inventories. US product inventories also remained tight despite high refinery activity. Combined gasoline, jet fuel, and gasoil/diesel stocks entered October at 352 million bbl, their lowest seasonally adjusted level since 2008, according to IEA. Robust exports and autumn maintenance added pressure on inventories, while unplanned Midwest refinery outages further supported

US crude oil inventories for the week ended Oct. 16, excluding the Strategic Petroleum Reserve, decreased by 3.1 million bbl from the previous week, according to data from the US Energy Information Administration (EIA). At 412.5 million bbl, US crude oil inventories are 3% below the 5-year average for this time of year, the EIA report indicated. Gasoline inventories decreased 3.0 million bbl, 5% below the 5-year average. Propane-propylene inventories decreased 500,000 bbl, 13% above the 5-year average. Total commercial petroleum inventories decreased by 8.5 million bbl for the week. Distillate inventories increased 1.7 million bbl, 9% below the 5-year average. US crude oil refinery inputs averaged 16.6 million b/d for the week ended Oct. 16, which was 34,000 b/d more than the previous week’s average. Refineries operated at 93.4% of capacity. Gasoline output averaged 9.8 million b/d, and distillate production increased to 5.2 million b/d. Crude oil imports decreased 291,000 b/d to 5.8 million b/d. The 4-week average of 6.1 million b/d is 2.8% above the year-ago level. Gasoline imports averaged 281,000 b/d; distillate imports averaged 117,000 b/d. Over the past four weeks, total product supplied averaged 21.1 million b/d, up 3.2% year over year. The 4-week average for gasoline product supplied increased 1.5% year over year to 8.7 million b/d, while the 4-week average for distillate product supplied decreased 2.4% to 3.9 million b/d. The 4-week average for jet fuel product supplied increased 1.4% year over year.

Adura Energy has received North Sea Transition Authority (NSTA) consent to develop Jackdaw natural gas and condensate field, off the coast of northeast Scotland, following consideration of the company’s environmental statement and agreement to the grant of consent.  NSTA originally granted development consent for Jackdaw to Shell UK in June 2022. But this consent was deemed unlawful and overturned by the Scottish courts in January 2025, following findings that initial environmental approvals had failed to account for the impact of secondary emissions. Estimated reserves at Jackdaw are 72-200 MMboe. The new approval clears the way for Jackdaw to start supplying gas to British homes, power stations, and businesses within weeks, according to Adura, substantially all of the project’s physical infrastructure already having been completed. Alongside Jackdaw’s reapproval, the UK government announced it will launch a £2-billion ($2.7-billion) energy wealth fund fueled by North Sea oil and gas tax revenues to reinvest directly into renewable projects. Adura is a joint venture formed when Shell and Equinor ASA merged their UK offshore oil and gas businesses. The associated Rosebank oil field is following Jackdaw in the regulatory process. An NSTA decision on it is anticipated in the coming weeks. A spokesperson for INEOS Group Ltd. said that “Jackdaw approval is welcome, but the government must stop taxing the North Sea into decline. Approving Jackdaw is the right decision, but this does not stop the damage being done to the North Sea. And it appears Rosebank remains stuck in political limbo.”