ARM Energy to Invest $2.3b in Mustang Express Pipeline

ARM Energy Holdings said on Thursday it has reached a final investment decision on its $2.3 billion Mustang Express Pipeline project in Texas, along with its partner Pacific Investment Management Company.

ARM, an energy marketing firm, said the project benefits from a long-term agreement with Sempra for shipment of natural gas for its Port Arthur LNG Phase 2 project, which recently achieved its own final investment decision.

Earlier this month, Sempra said it would sell a 45% stake in its infrastructure unit for $10 billion, and has approved a $14 billion expansion of Port Arthur LNG project in Texas.

The U.S. is the world's top LNG exporter with total capacity expected to reach 115 million MTPA this year, according to the country's Energy Information Administration.

The industry has enjoyed strong global demand and policy support from President Donald Trump, who returned to office in January promising to unleash U.S. energy. He also reversed a freeze on new export permits.

The pipelines, which will be constructed and operated by ARM, will have a total capacity of 2.5 billion cubic feet per day (bcf/d) and are expected to be completed in late 2028 or early 2029.

The 236-mile pipeline will include three segments - Mustang Mainline, Cougar lateral and the Golden triangle where the mainline will connect Katy Hub to Port Arthur.

(Reuters)