Midstream Earnings Underscore Strong Outlook for Natural Gas

As earnings are well underway, many midstream names have provided updates on natural gas growth opportunities, including those driven by AI and data centers. Williams Companies (WMB), Energy Transfer (ET), and TC Energy (TRP) are the latest midstream companies to share details on growth related to natural gas. 

Williams announced Transco’s Power Express pipeline, a 0.95 billion cubic feet per day (Bcf/d) expansion, during the firm’s earnings call on May 6. The project will provide energy to the Virginia area and is backed by a significant commitment from an anchor shipper. The project will use existing infrastructure to reduce permitting risk and provide scalability, according to Williams. Power Express is expected online in 2030.

Additionally, Williams is developing two other projects similar to the Socrates power generation project in Ohio. These projects will help meet growing power demand for data centers. 

Next, Energy Transfer is pursuing opportunities to meet growing power demand across its pipeline network. During its earnings call on May 6, the firm said it has roughly 200 data center opportunities in 14 states across its footprint. 

The company announced earlier this year it had entered into a long-term agreement with CloudBurst to provide up to 450,000 MMBtu/d of natural gas to a data center development in Central Texas.

Energy Transfer said it recently completed several agreements with electric utilities in the Midwest to provide connections for new natural gas-fired generation set to replace coal-fired generation.

Additionally, Energy Transfer announced it has begun construction of the Hugh Brinson Pipeline Project. This will provide additional transportation capacity out of the Permian Basin to serve growing natural gas demand 

Phase 1 of the Hugh Brinson Pipeline Project has a capacity of 1.5 Bcf/d and is sold out and backed by long-term, fee-based commitments with strong investment grade counterparties. Phase 2 would increase the capacity to 2.2 Bcf/d.

The Hugh Brinson Pipeline Project enhances Energy Transfer’s ability to support power plant and data center growth.

Finally, TC Energy announced the Northwoods Project during the firm’s first-quarter 2025 earnings call on May 1. It’s a new project on the ANR system that’s expected to be in service in 2029.

The project will serve power generation to support demand from data centers and overall economic development in the U.S. Midwest. It’s backed by a 20-year, take-or-pay contract with an investment-grade counterparty, according to the firm.

Williams, Energy Transfer, and TC Energy are holdings in the Alerian Energy Infrastructure ETF (ENFR ). The ETF offers exposure to the Alerian Midstream Energy Select Index (AMEI), a composite of North American midstream energy infrastructure companies.

ENFR includes corporations and MLPs engaged in the pipeline transportation, storage, as well as processing of energy commodities. Companies primarily focused on natural gas pipeline transportation represent 37.2% of the fund by weight as of May 6.

For more on midstream, please join us Tuesday, May 20, at 12:30 p.m. ET for our 30-minute webcast, “The State of Midstream/MLPs in Volatile Markets.” Register here.

For more news, information, and analysis, visit the Energy Infrastructure Channel.

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