Energy Transfer LP plans $5–$5.5 billion in 2026 capital expenditures, focusing on natural gas network enhancements due to better risk-return profiles compared to LNG, amid global oversupply concerns. The company suspended its Lake Charles LNG facility and is expanding the Transwestern pipeline in the Desert Southwest to 2.3 Bcf/d by Q4 2029, now upsized to 48 inches at a $5.6 billion cost. Projects ramping up in 2026 include the Nederland Flexport NGL, Mustang Draw I and II processing plants in the Permian, and data center-serving pipelines in Texas. Adjusted EBITDA is forecasted at $17.3–$17.7 billion for 2026 (exceeding analysts' $17.1 billion) and $16.1–$16.5 billion for 2025, with 2025 capex at $5 billion.
Chevron selected West Texas for its first natural gas-fired power project for a data center, operational in 2027 with up to 5 GW capacity (ramping to 2.5 GW by year three). Off-grid to avoid competition; secures demand for 3 Bcf/d Permian gas. Partnership with Engine No. 1; GE Vernova turbines. Broader strategy: 14% annual free cash flow growth to $30 billion by 2030 at $70/bbl Brent, $18-21 billion capex, 2-3% production growth, $4 billion savings by 2026.
East Daley Analytics forecasts 2026 as a shift to demand-driven midstream infrastructure, fueled by LNG exports (to 33 Bcf/d by 2030) and data centers/AI. Permian pipelines add 9 Bcf/d takeaway by 2030 to Gulf Coast. Projects like Hugh Brinson, Rio Bravo, Warrior, Blackcomb (2.5 Bcf/d), and Matterhorn support this. Processing utilization rises to 88% by 2026; MPLX expands sour gas handling. Demand from power gen and exports outpaces prior supply constraints.
ERCOT's large load queue surged nearly 300% in 2025 to over 233 GW (from year-end 2024), with 70% from data centers and 225 new requests by November 18. This overwhelms the review process; collective evaluation needed. SB 6 mandates standardized rules, better forecasting, and curtailment. Generation requests: 2,000 in 2025 (432 GW, 176 GW storage, 158 GW solar, 48 GW gas). Oncor's 180-mile 765-kV line proposal (energize by 2028) supports Permian growth.
In FY 2025, Texas oil/gas paid $27.0 billion in taxes/royalties ($74 million/day), second-highest ever, funding schools ($2.6 billion property taxes), ESF ($2.7 billion), highways ($2.7 billion). Employed 495,500 at $133,095 average wage, supporting 1.4–2 million jobs. Production records: 5.85 MMb/d crude (July), 35.4 Bcf/d gas (August). Exports peaked; pipelines at 472,790 miles; LNG capacity near 13 Bcf/d. Industry resilient amid challenges, emphasizing innovation for energy security and economic growth.
Vistra acquires Cogentrix Energy's 5.5 GW natural gas portfolio for $4 billion net ($2.3 billion cash, $900 million stock, $1.5 billion debt assumed, offset by $700 million tax benefits). Includes facilities in PJM (3 CCGT, 2 CT), ISO New England (4 CCGT), ERCOT (1 cogen). Closes mid-late 2026; financed by Goldman Sachs bridge loans. Boosts Vistra's capacity to 50 GW amid data center demand. Attractively priced; strategic ISO New England entry.
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