236-Mile Texas-to-Gulf Pipeline Reaches FID in $2.3 Billion LNG Expansion Push
A 236-mile, $2.3 billion Texas-to-Gulf natural gas pipeline has reached FID, marking a major step forward in connecting key Texas gas hubs to the Gulf Coast’s growing LNG export corridor.
(P&GJ) — ARM Energy Holdings and PIMCO have reached a final investment decision on the $2.3 billion Mustang Express Pipeline, a 236-mile, 42-inch natural gas line designed to move up to 2.5 Bcf/d of gas from key Texas hubs to Gulf Coast LNG demand centers.
The project, developed and operated by Houston-based ARM Energy with financial backing from Pacific Investment Management Company (PIMCO) and co-investors, has secured an anchor shipper commitment from Sempra Infrastructure to supply its Port Arthur LNG Phase 2 project, which recently achieved FID.
The pipeline system will include:
- Cougar Lateral – 55 miles from Tres Palacios Storage to the Katy Hub
- Mustang Mainline – 178 miles from Katy to Port Arthur
- Golden Triangle/Spindletop Lateral – 3 miles near Port Arthur
Completion is expected in late 2028 or early 2029. The project has already secured required steel and compression, with Jindal Tubular USA providing pipe and Solar Turbines Inc. supplying 300,000 hp of gas-driven compressors across three stations.
“Developing the Mustang Express Pipeline represents a major milestone in our growth and reinforces our commitment to quality, large-scale customers like Sempra Infrastructure,” said Zach Lee, CEO of ARM Energy. “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.”
Adam Gubner, Managing Director and Portfolio Manager at PIMCO, said the investment “reflects our commitment to infrastructure supporting LNG expansion in the U.S., while also providing compelling long-term opportunities for our clients.”
ARM Energy plans to launch an open season later this month for remaining capacity on the Mustang Express system.