- Energy Transfer reached a positive final investment decision on the 215-mile South Mississippi Pipeline, a 36-inch line able to move up to 1.2 billion cubic feet of gas per day.
- The project is expected to cost about $1.6 billion, with Energy Transfer retaining a 51% ownership stake and shipper-customers holding the rest.
- The pipeline will carry natural gas from eastern Louisiana across Mississippi, serving rising demand from AI data centers and LNG export terminals.
- Energy Transfer targets a 2030 in-service date, with a binding open season underway to lock in additional customer volumes.
What Happened
Energy Transfer LP has approved construction of the South Mississippi Pipeline, a 215-mile, 36-inch natural gas line with capacity for 1.2 billion cubic feet per day, at an expected cost of approximately $1.6 billion (Bloomberg, Nov. 3, 2026). The pipeline will move gas from eastern Louisiana across Mississippi.
Why It Matters
The project adds to a wave of gas infrastructure investment tied to AI power demand, following moves like Oracle’s gas-fired data center power deal with Bloom Energy and a broader surge documented in AI infrastructure debt issuance, which hit $155 billion this year. Data centers and LNG export terminals are both competing for new Southeastern gas supply.
Technical Details
Energy Transfer expects to operate the pipeline and own a 51% stake, with shipper-customers holding the remainder under long-term, demand-based transportation agreements. A binding open season is underway to solicit further customer commitments; final pipeline sizing and capacity will be set once that process closes.
Who’s Affected
AI data center operators and power generators in the Southeast gain a new committed gas supply source, while gas producers across multiple Southeastern basins get expanded pipeline access. Energy Transfer’s existing shipper base will also see capacity allocation decisions once the open season concludes.
What’s Next
Energy Transfer targets a 2030 in-service date for the pipeline. The company is expected to finalize sizing and additional contracted volumes once the current open season closes, with details likely to appear in a future quarterly filing.
