Energy Transfer Plots Up to $5.5 Billion in 2026 Growth Projects

Written by Will Ploch, Assistant Editor-in-Chief for IIR News (Sugar Land, Texas)

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Summary

Energy Transfer expects to see stronger capital investment in 2026, with major processing and transportation developments in the Permian Basin accounting for a significant chunk of its projected spending.

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Permian Pipelines, Processing Plants Power Up

Energy Transfer Partners (Dallas, Texas) isn't slowing down. The industry titan expects to invest $5 billion to $5.5 billion in growth capital throughout 2026, especially on its natural gas-transportation network. The company, which believes it will have invested about $5 billion for 2025, says the projects it expects to bring online this year are backed by long-term commitments. Industrial Info is tracking more than $13 billion worth of active and proposed projects from Energy Transfer worldwide, a majority of which is attributed to the processing and transportation of natural gas.

One of the top priorities for Energy Transfer in the coming months is a major development in the gas-rich Permian Basin: Phase I of its Mustang Draw Natural Gas Processing Plant in Stanton, Texas, about 20 miles northeast of Midland, which is designed to process 200 million cubic feet per day. The project started construction in August and is targeted for completion this summer.

"We continue to expect our Mustang Draw plant to be in service in the second quarter of 2026," said Thomas Long, the co-chief executive officer of Energy Transfer, in the company's most recent quarterly earnings-related conference call. "We also recently approved the construction of Mustang Draw II, which will have a capacity of 250 million cubic feet per day, and is supported by continued growth from existing customers. Mustang Draw II is expected to be in service in the fourth quarter of 2026."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about the Mustang Draw project--including capacities, investment values and necessary equipment--from a plant profile and detailed reports on Phase I and Phase II.

Another major Permian development, the Hugh Brinson Pipeline Expansion Project, is expected to see its 400-mile Phase I placed into service in the fourth quarter. Formerly called the Warrior Pipeline, the project is designed to transport natural gas from processing facilities in the Permian to existing pipeline infrastructure near the Dallas-Fort Worth area. Phase I will be accompanied by the 42-mile Midland Lateral, which will connect to Energy Transfer's third-party processing plants in the heart of the Permian.

"As of today, 100% of the right-of-way has been acquired for the proposed route" of the Hugh Brinson project, Long said in the conference call. "Over 85% of the pipe has been delivered to our pipe yards, and construction is underway on all five spreads of Phase I of the project." Subscribers can read detailed reports on Phase I and the lateral.

By the Numbers

• More than $13 billion: Total value of active and proposed projects from Energy Transfer worldwide
• 450 million cubic feet per day: Potential capacity for two-phase Mustang Draw Natural Gas Processing Plant
• 1.5 billion cubic feet per day: Expected capacity on the Hugh Brinson Pipeline Expansion Project

Big Steps Forward--and One Backward--for NGL

On the natural gas liquids (NGL) front, Energy Transfer is optimistic about the ongoing expansion of its refined products terminal in Nederland, Texas. Nicknamed "Flexport," the project is expected to boost the facility's export capacity from about 900,000 to 1.15 million barrels per day (BBL/d). In the fourth quarter of 2025, executives announced the expansion already had started its ethane and propane service and was preparing to begin its ethylene export service.

Energy Transfer expects to continue ramping up capacity from the Flexport expansion, with volumes added for liquefied petroleum gas (LPG) and other products as it reaches full completion. Long said the company expects to have more than 95% of all LPG export capacity at Nederland contracted through the end of the decade. Subscribers can learn more from a plant profile and detailed project report.

Later this year, Energy Transfer expects to bring online Train 9 at its NGL Fractionation Complex in Mont Belvieu, Texas. It is designed to add 165,000 BBL/d of processing capacity to Mont Belvieu's existing 1.05 million BBL/d. Subscribers can learn more from a plant profile and detailed project report.

Not everything on Energy Transfer's NGL agenda is moving forward as planned. Last month, the company announced it was suspending efforts to develop its long-gestating Lake Charles LNG facility in Louisiana, amid skyrocketing costs and fears of a global LNG supply glut. For more information, see December 19, 2025, article - Lake Charles LNG Suspended.

Subscribers can click here for a full list of active and proposed projects from Energy Transfer worldwide.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• Energy Transfer plans to invest up to $5.5 billion in 2026, with the developments in the Permian Basin set to benefit.
• The Hugh Brinson Pipeline is set for a major expansion, delivering more gas from the Permian Basin.
• More NGL capacity is expected at the company's Nederland and Mont Belvieu facilities.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).