Energy Transfer announces Hugh Brinson Pipeline to boost Permian Basin natural gas

Energy Transfer LP has officially announced its final investment decision (FID) for the Hugh Brinson Pipeline, a $2.7 billion project aimed at expanding natural gas capacity from the prolific Permian Basin to key markets and trading hubs. This large-scale infrastructure project, renamed in honour of Hugh Brinson, highlights Energy Transfer’s commitment to addressing surging natural gas demand in Texas and beyond.

A strategic move for the Permian Basin

The Hugh Brinson Pipeline, formerly known as the Warrior Pipeline, is designed to alleviate transportation bottlenecks in the Permian Basin, one of the largest natural gas production regions in the United States. The project’s first phase will include the construction of approximately 400 miles of 42-inch pipeline, capable of transporting 1.5 billion cubic feet per day (Bcf/d) from Waha to Maypearl, Texas, where it will connect to Energy Transfer’s vast intrastate pipeline and storage network.

In addition, Energy Transfer will build the Midland Lateral, a 42-mile, 36-inch lateral pipeline linking processing plants in Midland and Martin Counties to the mainline. This lateral is critical for ensuring seamless connectivity and maximising the region’s production potential.

Phase I is projected to be operational by late 2026, with Phase II slated to expand capacity to 2.2 Bcf/d by adding compression facilities. Depending on shipper demand, the two phases could be constructed simultaneously, offering flexibility to meet market needs rapidly.

Meeting growing natural gas demand

Energy Transfer’s existing infrastructure, which spans 44 states and connects major production basins across the U.S., provides a robust foundation for the Hugh Brinson Pipeline’s integration. By facilitating access to critical trading hubs like Carthage and Katy, the pipeline will enhance supply reliability for downstream markets, including power plants and data centres driving Texas’ energy growth.

The pipeline’s dual-phase design ensures scalability, allowing Energy Transfer to respond to evolving market dynamics while providing much-needed capacity for Texas’ booming industrial and residential sectors.

Financial backing and market implications

The $2.7 billion project is underpinned by long-term, fee-based commitments from investment-grade counterparties. This financial backing reinforces confidence in the project’s viability and reflects strong shipper demand for additional transportation options out of the Permian Basin.

Industry analysts suggest that the Hugh Brinson Pipeline will further solidify Energy Transfer’s position as a leading player in U.S. natural gas transportation. The company’s strategy to leverage existing infrastructure and optimise connectivity makes the pipeline a cornerstone of its long-term growth plans.

Expert opinions on the project

Energy market experts view the Hugh Brinson Pipeline as a vital development in addressing capacity constraints in the Permian Basin. One analyst remarked that the project not only improves regional infrastructure but also strengthens Texas’ role as a hub for energy innovation. However, they noted that cost considerations and regulatory hurdles will need to be carefully managed to maintain the project timeline.

A transformative project for Energy Transfer

With its extensive pipeline network already spanning over 130,000 miles, Energy Transfer is well-positioned to execute a project of this magnitude. The Hugh Brinson Pipeline represents a critical step in meeting rising natural gas demand, ensuring that the Permian Basin continues to play a central role in U.S. energy production.