Energy Transfer Commits to $1.6B Gas Pipeline
The 215-mile South Mississippi Natural Gas Pipeline would move up to 1.2 billion cubic feet of gas per day from Louisiana to Mississippi.
Updated on Nov. 3, 2026 in Oil and Gas
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Energy Transfer has committed to developing the $1.6 billion South Mississippi Natural Gas Pipeline, which would run 215 miles from Richland Parish, Louisiana, to the George County area of Mississippi. The company has secured binding commitments from anchor shippers and is holding a binding open season for additional customer commitments.
Why it matters
Rising natural gas demand from LNG export facilities and power generation supporting AI data centers is driving the project. The pipeline would add transport capacity linking Louisiana supply to Mississippi delivery points.
The $1.6 billion project would carry up to 1.2 billion cubic feet per day across 215 miles, with Energy Transfer owning 51% and customers expected to hold 49%. The open season closes November 25, 2026, and commitments beyond the existing anchor shippers remain unconfirmed.
The players
Energy Transfer
Energy Transfer is a Dallas-based midstream energy company that operates a large network of natural gas, crude oil and refined product pipelines across the United States.
Oracle
Oracle is a multinational technology company known for database software and cloud infrastructure, and it has disclosed natural gas supply arrangements with Energy Transfer for its U.S. data center operations.
The details
The 42-inch or 36-inch-diameter pipeline will include compression and metering facilities and will be developed by Energy Transfer Interstate Holdings. The company intends to co-locate most of the proposed expansion with existing infrastructure and has disclosed long-term natural gas supply arrangements with Oracle for its U.S. data center operations.
Timeline
November 25, 2026: Binding open season for additional customer commitments closes.
March 1, 2030: Pipeline is expected to enter commercial service.
Industry Landscape
The project reflects rising U.S. natural gas demand from LNG export terminals and the power needs of AI data centers, which are pushing midstream operators to expand transport capacity. Energy Transfer's plan to co-locate most of the expansion with existing infrastructure follows a pattern of building on established rights-of-way.
For consumers, the pipeline's effect on natural gas prices and availability is not addressed in the source material. Its development primarily affects industrial and power-sector gas buyers in Louisiana and Mississippi, and its timing depends on securing additional customer commitments.
The takeaway
Long-term gas pipeline commitments tied to data center and export demand signal that midstream capacity is being planned years ahead of expected load. Readers tracking energy infrastructure should watch the open season results and any FERC filings.
What happens next
Energy Transfer's binding open season closes November 25, 2026, and the company is expected to seek FERC authorization to construct the facilities.
Further reading
Explore more Oil and Gas coverage for context on pipeline expansion and natural gas demand.
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