Pipelines rising, big reshoring announcements, & additive manufacturing reshaping industrials
Natural gas pipelines seem poised for massive growth with domestic demand and increasing LNG export capacity
Four driving forces are setting the stage for a surge in US pipeline capacity growth:
Future exports: Trump lifting the Biden era freeze on LNG export permit applications which means that by 2028, US LNG export capacity is set to double.
Current exports: Record piped and LNG gas exports in 2024.
Rising domestic electricity demands driven by re-industrialization, AI compute demand (mainly data centers), and broadly the electrification of everything trend.
With this backdrop, US pipeline companies are greenlighting multiple large-scale projects:
“Kinder Morgan announced plans for a major new infrastructure initiative with its Trident Intrastate Pipeline project [which] will span approximately 216 miles, running from Katy, Texas, to the LNG and industrial corridor near Port Arthur, Texas. The project is part of a broader $5 billion natural gas project portfolio, including the Mississippi Crossing and South System Expansion projects. These initiatives reflect the increasing demand for natural gas, driven by LNG export growth, power generation, and emerging sectors such as data centers and cryptocurrency mining.
Kinder Morgan’s project backlog has surged by nearly 60%, reaching $8.1 billion at the end of 2024, with natural gas projects accounting for around 89% of this total. The company expects continued robust demand for natural gas infrastructure, which is integral to its long-term growth strategy.”
Energy Transfer, the US’s largest pipeline company, has multiple major projects including the Hugh Brinson Pipeline (400 miles), the Warrior NG Pipeline (260 miles), and the Nederland Terminal (NGL expansion project).
Big reshoring announcements in pharma and tech
Eli Lilly Wants to Bring Pharmaceutical Production Back to the US—Last week, Eli Lilly announced a $27 billion investment in four domestic manufacturing plants to boost weight-loss drug production. The company anticipates that the development of the sites could create nearly 10,000 construction jobs. The official release is here.
Apple will spend more than $500 billion in the US over the next four years
Teams and facilities to expand in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington
Plans include a new factory in Texas, doubling the U.S. Advanced Manufacturing Fund, a manufacturing academy, and accelerated investments in AI and silicon engineering.
Older news (from January) but since we’re talking about $500 billion investments, here is the press release for The Stargate Project, the AI endeavor between SoftBank, OpenAI, Oracle, and MGX, which will deploy $100 billion “immediately” on US based infrastructure projects.
Massimo Group Leads the Charge: Reshoring Manufacturing Back to the USA - not the same scale as the above two, but on trend nevertheless.
“While it brings its golf cart manufacturing to the U.S., Massimo is also staying ahead of the technology curve by ramping up production at its Garland, Texas, facility with a new robotic assembly line. This advanced system, featuring Automated Guided Robots (“AGRs”), increases efficiency by 50%, enhances quality control and improves worker safety.”
How Additive Manufacturing Is Reshaping U.S. Industries and Supply Chains
“With more than $1 trillion in infrastructure funding allocated since 2021, reshoring is no longer a trend — it's a transformative force reshaping U.S. manufacturing.”
Full article here.