ARM, PIMCO Greenlight $2.3B Mustang Express Pipeline

SECAUCUS, NJ (DTN) – ARM Energy Holdings announced Thursday (10/9) it was proceeding with the 236-mile, 42-inch diameter Mustang Express Pipeline costing $2.3 billion to connect major Texas supply hubs to the rapidly expanding Gulf Coast LNG export market.

The financial investment decision (FID) reached with financial partner Pacific Investment Management Company (PIMCO) will allow ARM to move ahead with the project engineered to move 2.5 billion bcf/d of gas, the company said in a statement.

The project, scheduled for completion in late 2028 or early 2029, will create a new natural gas artery in Texas to provide additional capacity to meet the feed gas requirements of new liquefaction facilities.

The Mustang Express Pipeline will feature three stages of development: The 55-mile Cougar Lateral line from the Tres Palacios Storage to Katy Hub in Katy; the 178-mile Mustang Mainline from Katy Hub to Port Arthur; and the 3-mileGolden Triangle / Spindletop Storage Lateral around Port Arthur.

The project will secure its commercial foundation with an anchor shipper commitment from Sempra Infrastructure, which itself recently reached a FID with a consortium of partners to utilize the transportation capacity to supply its Port Arthur LNG Phase 2 project.

“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,” ARM CEO Zach Lee said.

ARM also plans to conduct an open season for the remaining available capacity later this month, a move that will allow other market participants to secure transportation on the vital route connecting prolific producing regions to overseas markets.