$2.3 billion approved to construct 236-mile Texas-to-Gulf gas pipeline

(UI) — ARM Energy Holdings, LLC has reached a final investment decision on its $2.3 billion Mustang Express Pipeline project, developed in partnership with Pacific Investment Management Company (PIMCO) and co-investors. The 236-mile, 42-inch natural gas pipeline will connect key Texas gas hubs to the expanding Gulf Coast LNG corridor. 

The Mustang Express system will consist of two main segments — the 178-mile Mustang Mainline from Katy to Port Arthur and the 55-mile Cougar Lateral linking Tres Palacios Storage to the Katy Hub. A three-mile lateral will connect to storage facilities in the Port Arthur area. Together, the pipelines will have a capacity of 2.5 billion cubic feet per day (Bcf/d).

ARM Energy said the project has secured steel supply from Jindal Tubular USA and turbine capacity from Solar Turbines Inc. for three compressor stations totaling 300,000 horsepower. Construction is expected to begin following regulatory approvals, with completion anticipated in late 2028 or early 2029.

Sempra Infrastructure has committed as an anchor shipper on the system to supply its Port Arthur LNG Phase 2 project, which recently reached FID. ARM Energy plans to launch an open season later this month for remaining capacity.

“This pipeline strengthens connections between prolific U.S. natural gas production areas and LNG export terminals along the Gulf Coast,” said ARM Energy CEO Zach Lee. “It’s a critical link supporting global energy reliability and regional economic growth.”

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