Natural Gas Distribution NAICS 221210

Jan 23, 2026 - LNG Export Terminal Project Suspended

• Energy Transfer has suspended its $5.3 billion Lake Charles LNG export terminal project in Louisiana, citing rising costs, oversupply concerns, and a desire to redirect capital toward natural gas pipeline expansions that it says offer better returns, according to Engineering News Record. The company remains open to third-party interest in the LNG project, which had been slated to supply Chevron and convert an existing import facility into a major export site. At the same time, Energy Transfer is boosting investment in its Desert Southwest Transwestern pipeline expansion, increasing capacity to 2.3 billion cubic feet per day to meet demand from population growth, data centers, and gas-fired power generation. Other U.S. pipeline expansions are advancing, including projects by Kinder Morgan and TC Energy. In Alaska, the $45 billion Alaska LNG project secured key federal permits, though financing, competition, and environmental challenges still cloud its path to construction.
• Kinder Morgan reported stronger fourth-quarter results and reaffirmed its optimistic outlook for long-term U.S. natural gas demand, citing rising electricity consumption from data centers and continued growth in LNG exports, according to Reuters. The company moved higher gas volumes through its system, transporting about 48.4 trillion British thermal units per day, up from a year earlier, and said new expansion projects, its Outrigger Energy acquisition, and related services helped drive earnings above analyst expectations. Kinder Morgan’s project backlog grew to $10 billion, and it plans to start its Hiland Express pipeline conversion by the end of the first quarter. The company, which handles about 40 percent of U.S. natural gas output, also benefited from an 11 percent rise in natural gas futures, though total refined product delivery volumes declined.

• The US natural gas distribution industry must expand pipeline infrastructure and storage to meet rising demand and strengthen grid reliability, according to a November report by the National Association of Regulatory Utility Commissioners’ (NARUC) Gas-Electric Alignment for Reliability (GEAR) task force, according to Utility Dive. The report emphasized harmonization between gas and electric sectors, citing past storms where fuel shortages contributed to widespread outages. Recommendations include investing in new pipeline and storage capacity, creating a readiness forum, enhancing market tools to improve supplier performance during extreme weather, and incentivizing pipeline capacity releases. The task force highlighted the economic challenges facing gas distribution and the need for regulators to strategically expand storage opportunities. Industry groups supported the findings, noting that improved coordination and investment will be critical for ensuring reliable, affordable energy as demand continues to grow.
• During the federal government’s 43-day shutdown, the Federal Permitting Improvement Steering Council advanced key energy projects using multi-year funding authority, according to Pipeline & Gas Journal. Despite the lapse in appropriations, nine projects were added to the FAST-41 portfolio, including the Kosciusko Junction Pipeline Project in Mississippi, the Black Bear Natural Gas Project in Texas, the South System Expansion 4 Project spanning Mississippi to South Carolina and Georgia, and the Mississippi Crossing Project, which is capable of moving 2.1 billion cubic feet per day to the Southeast. These additions highlight continued federal support for expanding midstream infrastructure, which is critical to meeting rising demand and improving reliability. The FAST-41 program, established by the Fixing America's Surface Transportation Act of 2015, aims to strengthen the coordination among federal agencies to expedite environmental reviews for infrastructure projects.