Energy Transfer will operate the pipeline and hold a 51% ownership stake. Credit: Maksim Safaniuk/Shutterstock.com.
US-based midstream company Energy Transfer has approved a final investment decision (FID) for the $1.6bn South Mississippi Pipeline Project in southern Mississippi, US.
The project will involve the construction of a 215-mile, 36in pipeline capable of transporting up to 1.2 billion cubic feet per day (bcf/d) of natural gas.
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The pipeline is scheduled to begin operations in 2030 and will be operated by Energy Transfer, which will hold a 51% ownership stake. The remaining interest will be owned by shippers, contingent on the results of the current open season for further customer commitments.
The South Mississippi Pipeline project is supported by long-term, demand-based transportation agreements and is designed to expand access to natural gas from several basins in the Southeastern US.
Energy Transfer also unveiled plans for a new 200mcf/d cryogenic processing facility, Bear II, to be constructed in the Delaware Basin, next to its existing Bear plant. Operations of Bear II are scheduled to begin in Q3 2027.
The company disclosed the two projects as part of its financial results for the third quarter of 2026. Energy Transfer’s net income attributable to partners for the quarter ended 30 September was $1.21bn, up 18% from $1.02bn in the same period last year.
Quarterly revenue rose 86% to $37.1bn, compared with $19.95bn a year earlier.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was $5.03bn, representing a 31% increase from $3.84bn in the prior-year period.
Energy Transfer has raised its full-year 2026 adjusted EBITDA guidance to a range of $19.7bn to $19.9bn, up from the previous expectation of $18.8bn to $19.1bn.
Operationally, Energy Transfer reported a 14% increase in intrastate transportation volumes and a 6% rise in midstream gathered volumes during the quarter, both reaching new partnership records.
Natural gas liquids (NGL) transportation volumes increased by 6%, NGL exports by 9%, and NGL fractionation volumes by 5% compared to Q3 2025.
During the quarter, Energy Transfer advanced several strategic development initiatives, aimed at bolstering its US asset portfolio.
Phase I of the Hugh Brinson Pipeline was brought into full service ahead of schedule on 1 September 2026, with Phase II expected to complete in the first quarter of 2027 and the overall project forecast to be delivered below budget.
In October, the company commissioned the Mustang Draw II processing plant, which has a capacity of 275 million cubic feet per day (mcf/d), in the Midland Basin.
Additionally, Energy Transfer has entered into two agreements to provide firm natural gas transport via its MRT Pipeline to a pair of power plants currently under construction in Missouri and will install new pipeline and metering facilities in support of these contracts.
The company has also announced it will build a tenth fractionator, Frac X, at Mont Belvieu. This facility, planned to have a capacity of 200,000 barrels per day, is expected to come online in the first half of 2029.
During Q3 2026, Energy Transfer finalised the installation of new compression and metering infrastructure on its Rover Pipeline system to fulfil a 15-year transport agreement with a producer in the Marcellus region.
Last month, Energy Transfer agreed to acquire Vaquero Midstream for about $2.6bn in cash and equity, aiming to expand its natural gas gathering and processing network. The transaction is expected to close in the fourth quarter of 2026, pending regulatory approvals.
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Source: www.offshore-technology.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
