Energy Transfer approval for new pipeline named Warrior (Hugh Brinson Pipeline)

Energy Transfer LP, the Dallas-based energy infrastructure giant, is further expanding its operations with a new nearly $3 billion natural gas pipeline project, named the Hugh Brinson Pipeline, in honor of Hugh Brinson. This development follows the company’s $7.2 billion acquisition of Enable Midstream three years ago and marks a significant investment in enhancing transportation capacity out of the prolific Permian Basin.

Project Overview

The Hugh Brinson Pipeline, formerly referred to as the Warrior Pipeline, will provide critical infrastructure to meet the growing demand for natural gas transportation. Key details include:

• Phase I:
  • Construction of a 400-mile, 42-inch pipeline from Waha to Maypearl, Texas (south of Dallas/Fort Worth).
  • Initial capacity of 1.5 billion cubic feet per day (Bcf/d).
  • Connection to Energy Transfer’s extensive pipeline and storage infrastructure.
  • Construction of the Midland Lateral, a 42-mile, 36-inch lateral, linking processing plants in Martin and Midland Counties to the Hugh Brinson Pipeline.
  • Target operational date: End of 2026.
• Phase II:
  • Addition of compression facilities to boost the pipeline’s capacity to 2.2 Bcf/d.
  • Could potentially be built concurrently with Phase I, depending on shipper demand.

Investment and Commitments

• Combined costs of Phase I and Phase II are estimated at $2.7 billion.
• Backed by long-term, fee-based contracts with investment-grade counterparties.

Strategic Importance

• The pipeline will connect the Permian Basin to major markets and trading hubs, including Carthage and Katy, Texas.
• It strengthens Energy Transfer’s position as a key player in supporting Texas’ growing energy demands, including power plants and data centers.
• Provides shippers with access to an extensive intrastate natural gas pipeline network and downstream markets.

This pipeline is expected to play a pivotal role in alleviating bottlenecks in the Permian Basin, supporting both domestic energy needs and the broader market demands, ensuring continued growth for Energy Transfer LP in the region.

ETC Permian Midstream

11 processing facilities (Waha, Coyanosa, Red Bluff, Halley, Jal, Keyston, Tippet, Orla, Panther, Rebel and Arrowhead) with aggregate capacity of 2.4 billion cubic feet per day (Bcf/d) and one natural gas conditioning facility with aggregate capacity of 200 million cubic feet per day (MMcf/d).

Energy Transfer Gas Plant Locations

The Permian Basin gathering system assets offer wellhead-to-market services to producers in eleven West Texas counties, as well as two counties in New Mexico, which surround the Waha Hub, one of Texas’s developing NGL-rich natural gas market areas. As a result of the proximity of our system to the Waha Hub, the Waha gathering system has a variety of market outlets for the natural gas that we gather and process, including several major interstate and intrastate pipelines serving California, the mid-continent region of the United States and Texas natural gas markets. The NGL market outlets include Lone Star’s NGL pipelines.

We own a 50% membership interest in Mi Vida JV, a joint venture which owns a 200 MMcf/d cryogenic processing plant in West Texas. We operate the plant and related facilities on behalf of the joint venture.

We own a 50% membership interest in Ranch Westex LLC, JV, which processes natural gas delivered from the NGL-rich Bone Spring and Avalon Shale formations in West Texas. The joint venture owns a 25 MMcf/d refrigeration plant and a 100 MMcf/d cryogenic processing plant.

New ETC Projects in the Permian

GREY WOLF PROCESSING PLANT – Construction has commenced on our new 200 MMcf/d cryogenic processing plant in the Delaware Basin. The Grey Wolf plant is supported by new commitments and growth from existing customer contracts, and is expected to be in service by the end of 2022. In addition to providing incremental revenue to our midstream segment, once in service, the volumes from the tailgate of the plant will utilize our gas and NGL pipelines for takeaway, providing three revenue streams.

About Energy Transfer

Energy Transfer is a Texas based company that began in 1996 as a small intrastate natural gas pipeline operator and is now one of the largest and most diversified investment grade master limited partnerships in the United States. Growing from roughly 200 miles of natural gas pipelines in 2002 to more than 114,000 miles of natural gas, natural gas liquids (NGLs), refined products, and crude oil pipelines.

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in North America, with a strategic footprint in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 46.1 million common units of USA Compression Partners, LP (NYSE: USAC).