Energy Transfer’s third-quarter update identifies a $1.6 billion South Mississippi gas-pipeline project at final investment decision, new Delaware Basin processing and a planned Mont Belvieu fractionator, alongside $5.4 billion–$5.6 billion of expected 2026 growth capital.
Published by Allstream Insiders
Allstream Insiders Summary
Energy Transfer has raised its expected 2026 growth-capital range to $5.4 billion–$5.6 billion and said it expects to invest approximately $7 billion in growth capital during 2027. According to the company’s November 3, 2026, third-quarter announcement, the program includes several named natural-gas, processing, pipeline and fractionation developments at different stages of execution.
The most defined new project is the South Mississippi Pipeline Project, for which Energy Transfer said it reached a positive final investment decision. The partnership described a proposed 215-mile, 36-inch natural-gas pipeline with 1.2 Bcf/d of capacity and an expected cost of approximately $1.6 billion. A binding open season remains under way, and Energy Transfer said final pipeline sizing and capacity will be determined after that process. The company projects service in 2030.
The release also identifies the planned 200 MMcf/d Bear II cryogenic processing plant in the Delaware Basin, a 200 MBbl/d tenth fractionator at Mont Belvieu, completed work at Mustang Draw II and Rover, and reimbursable pipeline and metering facilities tied to two Missouri power plants under construction.
Energy Transfer’s disclosed project updates at a glance
| Project or program | Company-reported scope and status | Timing or cost disclosed |
|---|---|---|
| South Mississippi Pipeline Project | Positive FID; proposed 215-mile, 36-inch pipeline with 1.2 Bcf/d capacity. Binding open season remains under way, and final size and capacity will be set after that process. | Approximately $1.6 billion; projected in service in 2030 |
| Hugh Brinson Pipeline | Phase I entered full service September 1; Phase II remains under development. | Phase II targeted for Q1 2027; Energy Transfer said the full project is expected to be under budget. |
| Mustang Draw II | 275 MMcf/d processing plant in the Midland Basin placed in service. | In service in October 2026 |
| Bear II | Planned 200 MMcf/d cryogenic processing plant adjacent to the existing Bear plant in the Delaware Basin. | Expected in service in Q3 2027 |
| Rover Pipeline | Compression and meter facilities completed for a 15-year transportation agreement with a Marcellus producer, adding 250,000 MMBtu/d of firm commitments. | Agreement began November 1, 2026 |
| MRT power-plant connections | Two agreements totaling 150,000 MMBtu/d of firm transportation service for Missouri power plants under construction; associated pipeline and metering facilities are planned. | Facilities are fully reimbursable; agreements expected to begin in late 2027 and mid-2028 |
| Frac X at Mont Belvieu | Planned tenth fractionator with 200 MBbl/d capacity. | Expected in service in the first half of 2029 |
South Mississippi Pipeline has reached FID, but final scope remains subject to the open season
Energy Transfer said it has secured long-term, demand-based transportation agreements supporting construction of the proposed South Mississippi Pipeline Project. The company said it will likely own and operate 51% of the project, with shippers holding the remaining ownership interests.
The proposed system would give shippers access to natural-gas supply from multiple basins serving the Southeastern United States. However, the active binding open season is material: Energy Transfer said final pipeline sizing and capacity will be determined after additional customer commitments are evaluated.
Final investment decision is a meaningful development milestone, but it does not establish that all construction has begun, that final pipeline size has been fixed, or that project-specific engineering, procurement or construction contracts have been awarded. The company’s 2030 in-service target remains forward-looking.
Permian processing additions span completed and planned assets
Energy Transfer placed the 275 MMcf/d Mustang Draw II processing plant in service in the Midland Basin during October. The company also announced Bear II, a planned 200 MMcf/d cryogenic processing plant in the Delaware Basin beside its existing Bear processing plant, with a stated in-service target in the third quarter of 2027.
Bear II is an announced plant development. The release does not disclose its capital cost, gas-supply contracts, exact location, equipment manufacturers, engineering firm, construction contractor or a construction-start date. Those details should not be inferred from the stated processing capacity and target service date.
Power demand and NGL infrastructure are also part of the update
Energy Transfer said it has executed two agreements to provide a combined 150,000 MMBtu/d of firm transportation service from the MRT Pipeline to two power plants under construction in Missouri. The company said it will add pipeline and metering facilities to support the agreements and that the associated growth capital will be fully reimbursable.
The release does not name the power plants, their owners, the facility locations, pipeline mileage, meter-station design, total investment amount or contractors. It anticipates the agreements becoming effective in late 2027 and mid-2028.
Separately, Energy Transfer said it plans to construct Frac X, its tenth fractionator at Mont Belvieu. The planned fractionator would have 200 MBbl/d of capacity and is expected to enter service in the first half of 2029. The announcement does not identify its capital cost or supplier and contractor packages.
2026–2027 capital outlook is portfolio-wide, not project-by-project
The company expects growth capital of $5.4 billion–$5.6 billion in 2026 and approximately $7 billion in 2027. Those figures cover Energy Transfer’s broader growth program. Apart from the South Mississippi Pipeline’s approximately $1.6 billion expected cost, the third-quarter release does not allocate the portfolio-wide totals among Bear II, Frac X, the MRT facilities, Hugh Brinson Phase II or other named projects.
Energy Transfer also said its proposed acquisition of Vaquero Midstream for approximately $2.6 billion is expected to close in the fourth quarter of 2026, subject to regulatory approval and customary closing conditions. That transaction is separate from the growth-capital guidance and is not a new construction project.
Allstream perspective: What work could be involved if the announced projects advance
Allstream perspective: A final pipeline design and construction program such as the South Mississippi project could involve route and detailed engineering, survey and environmental work, right-of-way services, line pipe, valves, compressor-station equipment, meter and regulation equipment, controls and communications systems, welding, horizontal directional drilling, civil work, coatings, hydrostatic testing, inspection and commissioning. The ultimate scope would depend on the final capacity, route, permits and customer commitments; Energy Transfer has not announced procurement packages or contractor awards for the project.
Processing, fractionation and power-connection facilities can also require process engineering, cryogenic equipment, compressors, pumps, motors, electrical and instrumentation systems, pipe fabrication, structural steel, insulation, scaffolding, coatings, equipment rental and construction services. These are examples of work that can be associated with projects of this type—not disclosed awards, supplier selections or confirmed bid opportunities.
The decision-useful next milestones are the conclusion of the South Mississippi open season, final project configuration, permits, construction notices, equipment orders and named contractor awards, along with further development updates for Bear II, Frac X and the MRT facilities.
