Energy Transfer Reaches $2.7bn FID on Hugh Brinson Permian Pipeline

(Energy Analytics Institute, 6.Dec.2024) — Dallas-based Energy Transfer LP reached a positive $2.7bn final investment decision (FID) for the construction, in two phases, of an intrastate natural gas pipeline connecting Permian Basin production to premier markets and trading hubs. 

The project is backed by long-term, fee-based commitments with strong investment grade counterparties, Energy Transfer said 6 Dec. 2024 in an official statement.

The new large-diameter pipeline, previously called the Warrior Pipeline, is being renamed in honor of Hugh Brinson and will now be known as the Hugh Brinson Pipeline. The pipeline will provide much needed transportation capacity out of the Permian Basin to serve growing gas demand.

The Hugh Brinson Pipeline will connect shippers to Energy Transfer’s existing intrastate gas pipeline network and other downstream pipelines. In addition, it will provide shippers with the optionality to access prolific markets and trading hubs throughout Texas and beyond, including Carthage and Katy. This project is also expected to further establish Energy Transfer as the premier option to support power plant and data center growth in the state of Texas.

Two phases of Hugh Brinson Pipeline

The Hugh Brinson Pipeline is expected to be constructed in two phases. 

Phase I will include construction of 400 miles of 42-inch pipeline with a capacity of 1.5 billion cubic feet per day (Bcf/d). It will extend from Waha to Maypearl, Texas located south of the Dallas/Ft. Worth Metroplex, where it will then connect to Energy Transfer’s vast pipeline and storage infrastructure. Energy Transfer expects Phase I to be in service by year-end 2026.

During Phase I of the pipeline, Energy Transfer will also construct the Midland Lateral, which is expected to be a 42-mile, 36-inch lateral to connect Energy Transfer and third-party processing plants in Martin and Midland Counties to the Hugh Brinson Pipeline.

Phase II will include the addition of compression to increase the capacity of the new pipeline to 2.2 Bcf/d. Depending on shipper demand, Phase II could be constructed concurrently with Phase I.

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By Editors at Energy Analytics Institute. © Energy Analytics Institute (EAI). All Rights Reserved.