The Permian Basin’s natural gas future just became a lot more connected. On October 9, ARM Energy and PIMCO announced a Final Investment Decision (FID) on the Mustang Express Pipeline, a $2.3 billion, 42-inch project that will transform gas flows from the Katy Hub to the Gulf Coast LNG corridor.
Permian Basin Wells Drilled Last 12 Months
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The project is underpinned by an anchor shipping commitment from Sempra Energy’s Port Arthur LNG Phase 2, which reached its own FID last month. Together, these milestones mark a major leap in connecting West Texas supply to booming LNG export demand.
Project Overview: Linking Katy to Port Arthur
The Mustang Express will add 2.5 billion cubic feet per day (Bcf/d) of new capacity from Katy to Port Arthur, with commercial service expected by late 2028.
The system design is especially strategic. It includes:
- A lateral to Tres Palacios, enhancing access to underground gas storage in Matagorda County.
- A connection to Golden Triangle Storage near Port Arthur, providing optionality for balancing flows and capturing value on both ends of the pipeline.
This dual-storage design gives shippers a crucial edge in managing seasonal spreads and LNG delivery schedules — and strengthens reliability across Texas’s most vital energy corridor.
Creating a Permian-to-LNG Superhighway
The Mustang Express is more than a Gulf Coast connection — it’s the missing link in a superhighway of natural gas infrastructure stretching from the Permian Basin’s Waha Hub to the Louisiana border.
Once in service, it will help de-bottleneck one of the tightest sections of U.S. midstream: the Katy–Gillis corridor, where fewer than 3 Bcf/d of capacity currently moves gas toward Louisiana’s LNG export terminals.
This corridor is quickly becoming the focal point for new midstream investment. Several other major pipelines are advancing alongside Mustang Express:
- WhiteWater’s Blackfin Pipeline (3.5 Bcf/d) – Nearing completion and expected to feed Venture Global’s CP2 LNG terminal through the CP Express header line, currently under construction.
- Kinder Morgan’s Trident Pipeline (2 Bcf/d) – Targeted for early 2027 service, backed by long-term commitments from Golden Pass LNG.
Together, these systems will create a continuous flow path from the Permian to Gillis, ensuring gas can reach the largest LNG export facilities on the Gulf Coast without constraints.
Market Impact: Strengthening Waha and Katy Pricing
By expanding capacity from the Permian to demand centers, Mustang Express will help reduce basis volatility at the Waha Hub — a recurring pain point for producers.
In recent years, limited takeaway capacity has caused Waha prices to trade deep below Henry Hub, at times even turning negative. The new line, combined with the Trident and Blackfin projects, will relieve pressure on West Texas pipelines and support prices at both Waha and Katy by ensuring smoother flow to end markets.
The investment also reflects growing confidence in long-term U.S. LNG export growth, with total Gulf Coast capacity expected to nearly double by 2029 as new projects come online in Texas and Louisiana.
As a result, midstream developers are racing to build the infrastructure needed to transport and store gas efficiently across Texas’s complex energy landscape.
The Bigger Picture: The Permian at a Crossroads
The Mustang Express announcement is another sign that Permian natural gas is stepping into a starring role in North America’s energy transition.
Historically treated as an oil byproduct, gas from the Permian is increasingly driving capital allocation decisions, attracting institutional investors like PIMCO, and underpinning the U.S.’s emergence as the world’s largest LNG exporter.
This shift is explored in East Daley Analytics’ new white paper, “The Permian Basin at a Crossroads,” which examines how LNG demand growth and AI-driven data centers are redefining the basin’s value chain — turning gas into a primary revenue stream and spurring multi-billion-dollar infrastructure investments.
📘 Download the report: The Permian Basin at a Crossroads
(Part one of a three-part series on the future of U.S. shale gas and midstream infrastructure.)
Key Takeaway
The Mustang Express isn’t just another pipeline — it’s a cornerstone project for a new era in the Permian Basin. By linking West Texas supply directly to Gulf Coast LNG demand, it represents the next phase of U.S. energy infrastructure: larger, smarter, and globally integrated.
As 2028 approaches, the Mustang Express will help ensure that Permian gas flows freely to world markets, supporting both domestic stability and the next chapter of American energy dominance.
