Energy Transfer approves $1.6 billion South Mississippi gas pipeline

Energy Transfer said it reached a positive final investment decision on the South Mississippi Pipeline Project, a planned 215-mile natural-gas line expected to cost about $1.6 billion. The company projects service in 2030.

The proposed 36-inch line would provide approximately 1.2 billion cubic feet per day of firm transportation capacity. Running from near the Perryville Hub in northeastern Louisiana to Florida Gas Transmission in southern Mississippi, it would give shippers access to natural gas from multiple southeastern U.S. basins.

Energy Transfer said long-term, demand-based transportation agreements support construction, while a binding open season is seeking additional customer commitments. Final pipe sizing and capacity will be determined after that process, the company said, so the 36-inch design and 1.2 Bcf/d figure remain planned specifications.

Ownership also remains provisional. Energy Transfer said it will likely own 51% of the project and operate it; shippers or their affiliates would hold the remaining interest. The company has not publicly identified those prospective co-owners.

Energy Transfer’s official project materials do not identify AI or data centers as the reason for the investment or as sources of anchor demand. The company’s third-quarter presentation discusses data-center gas-supply agreements and negotiations elsewhere in its network without linking them to the South Mississippi pipeline.