Energy Transfer OK’s new $2.7B Permian Basin pipeline project

Energy Transfer (NYSE:ET) announced on Friday a final investment decision to develop the Hugh Brinson Pipeline – formerly the Warrior Pipeline – an interstate natural gas pipeline project connecting the Permian Basin to multiple markets.

The project will be built in two phases: Phase 1 includes construction of 400 miles of 42-inch pipeline with a capacity of 1.5B cf/day from Waha to Maypearl, Texas, plus a 42-mile Midland Lateral connecting Energy Transfer (ET) and third-party processing plants, and Phase 2 would increase capacity to 2.2B cf/day through additional compression.

Energy Transfer (ET) estimates the combined cost at $2.7B, backed by long-term, fee-based commitments from investment-grade counterparties.

The company said the pipeline will connect to its existing intrastate natural gas pipeline network and other downstream pipelines, and provide shippers with the optionality to access prolific markets and trading hubs throughout Texas and beyond; Phase 1 completion is expected by year-end 2026.