Aspen Midstream Reaches FID on Katy Hub for Gulf Coast Demand

Aspen Midstream reached FID on a new Katy Hub facility in Texas designed to connect growing natural gas supplies with LNG, power and industrial demand along the Gulf Coast.

(P&GJ) — Aspen Midstream has reached a final investment decision on its planned Aspen Katy Hub facility in Texas, a project designed to expand natural gas connectivity between major supply basins and growing Gulf Coast demand centers.

The project will include new compression infrastructure and low- and high-pressure header systems in the Katy, Texas region. Aspen said the facility will provide approximately 3 billion cubic feet per day of receipt and delivery capacity across eight major interstate and intrastate natural gas pipelines when it enters service in the first quarter of 2027.

The company said the hub is intended to support rising demand tied to LNG exports, power generation and industrial growth along the Gulf Coast.

Matt Ray, co-chief executive officer of Aspen Midstream, said the project is positioned near major supply basins and expanding Gulf Coast markets.

“This investment reflects our disciplined approach to deploying capital behind long-term, contracted infrastructure that enhances market connectivity and delivers reliable energy where it’s needed most,” Ray said.

Aspen said the project is supported by long-term take-or-pay agreements with investment-grade shippers.

Dallas-based Aspen Midstream provides natural gas gathering, processing, compression, treating and transmission services across multiple U.S. producing regions.