ARM Energy to build Mustang Express pipeline to US Gulf Coast

ARM Energy announced on October 9 that it had made a final investment decision (FID) on the Mustang Express natural gas pipeline in Texas.

The $2.3bn project will cover 236 miles (380 km) and will deliver natural gas to Port Arthur on the US Gulf Coast. The pipeline will consist of a 178-mile (286-km) mainline portion from the Katy Hub in Texas to Port Arthur. In addition, there will be a 55-mile (89-km) lateral that connects to the Tres Palacios Storage, which will be known as the Cougar lateral, and the 3-mile (5-km) Golden Triangle/Spindletop Storage lateral around Port Arthur.

ARM said it had lined up Sempra Infrastructure as an anchor shipper and would provide natural gas for its Port Arthur LNG Phase 2 project, on which an FID was announced in September. Feed gas demand is booming on the Gulf Coast as a result of new LNG capacity being built.

ARM said it would conduct an open season for the remaining available capacity on Mustang Express, starting later this month.

Mustang Express will have a total capacity of 2.5bn cubic feet (70.8mn cubic metres) per day. ARM said it would build and operate the pipeline along with its financial partners, Pacific Investment Management Co. (PIMCO) and associated co-investors.

ARM noted that it had already secured all of the required steel and compression required to build and operate the pipeline. Jindal Tubular USA will provide the mill capacity and Solar Turbines will provide the turbines for the three planned compressor stations, the company said. The compressor stations will be gas-driven and will have a total capacity of 300,000 horsepower.

“Developing the Mustang Express pipeline represents a major milestone in our growth and reinforces our commitment to quality, large-scale customers like Sempra Infrastructure,” stated ARM’s CEO, Zach Lee. “By linking two of the most prolific natural gas-producing regions in the US directly to LNG export facilities in Texas, we are helping ensure a reliable supply of natural gas for liquefaction and export with a route that crosses four storage facilities – delivering positive impacts for global energy needs and Texas communities.”