Midstream Companies Expand Natural Gas Pipelines as LNG & AI Demand Grows

• Williams Companies announced a $5.5 billion acquisition of Momentum Midstream (adding 4.05 Bcf/d capacity) plus a $1.5 billion Delta Access Expansion project delivering 2.25 Bcf/d to Gulf Coast markets by early 2029
• Energy Transfer and NextEra sanctioned the 2.6 Bcf/d Bay Runner Twin Pipeline to supply NextEra's Rio Grande LNG terminal, scheduled for service by 2030 with take-or-pay agreements securing cash flows
• MPLX and EQT expanded infrastructure specifically for AI data centers, including MPLX's $400 million in projects serving Virginia data centers and EQT's 380 MMcf/d Ohio interconnect for a new AI facility

Summary

Midstream energy companies are significantly expanding natural gas pipeline infrastructure to meet surging demand from LNG exports and AI-powered data centers, deploying billions in acquisitions and development projects.

Key Transactions:

Williams Companies leads with a $5.5 billion acquisition of Momentum Midstream, adding 4.05 Bcf/d (billion cubic feet per day) of pipeline capacity serving Gulf Coast LNG, power, and industrial customers. Williams also announced a $1.5 billion Delta Access Expansion project adding 2.25 Bcf/d capacity along its Transco corridor, scheduled for early 2029.

Energy Transfer and Kinder Morgan jointly sanctioned the Bay Runner Twin Pipeline, a 2.6 Bcf/d project delivering Permian gas to NextDecade's Rio Grande LNG facility by 2030. This supplements the original 2.6 Bcf/d Bay Runner Pipeline launching in Q3 2024.

AI Data Center Impact:

Equitrans Midstream secured two expansion projects backed by 20-year take-or-pay contracts: the $300 million Central Virginia Capacity Project (0.4 Bcf/d, 2028-2030) and the $100 million Clark Project (0.3 Bcf/d, 2028). Both target gas-fired utilities serving regional data centers.

DT Midstream commercialized a 380 MMcf/d interconnect on its NEXUS pipeline directly supplying a new Ohio AI data center.

Market Implications:

Long-term take-or-pay contracts provide predictable cash flows and reduce risk for midstream operators. The convergence of LNG export growth and hyperscale AI infrastructure creates sustained demand drivers for natural gas transportation. These developments position midstream companies for stable, contracted revenue growth through 2030 and beyond, particularly benefiting companies with Gulf Coast and data center-heavy regional exposure.