ARM Energy and its financial partner Pacific Investment Management Company (PIMCO) unveiled Oct. 9 a new Gulf Coast pipeline called the Mustang Express. Running 236 miles from the southwest end of the Houston area up to Port Arthur, the Mustang Express will be constructed following a $2.3 billion investment from PIMCO and other investors.
The line has two segments: a 55-mile piece called the Cougar running from Tres Palacios Storage in Bay City to the Katy Hub, then a 178-mile piece called the Mainline running from the Katy Hub to Port Arthur. Both segments can transmit up to 2.5 billion cubic feet of natural gas per day.
“We are thrilled to partner with PIMCO and our other equity partners on this highly interconnected pipeline, which will significantly enhance the efficiency of the U.S. natural gas supply chain,” said Chief Executive Officer of ARM Energy Zach Lee. “By linking two of the most prolific natural gas-producing regions in the U.S. directly to LNG export facilities in Texas, we are helping ensure a reliable supply of natural gas for liquefaction and export with a route that crosses four storage facilities—delivering positive impacts for global energy needs and Texas communities.”
ARM touts that some of the LNG that will be transported will aid Sempra Infrastructure’s $14-billion Port Arthur LNG Phase 2 project, which “is expected to help meet demand for U.S. LNG in European, Asian and other global markets,” per its website.
The pipeline is expected to be complete no later than early 2029, and ARM is going to call for bidders for remaining capacity later in October.
Meanwhile, Kinder Morgan is pushing forward with its 216-mile Trident Intrastate Pipeline, which is also meant to connect the Katy Hub to Port Arthur, sending 1.5 billion cubic feet of LNG to the shore. That specific pipeline is meant to help the energy demand of high-powered data centers across Texas.