ARM Energy and PIMCO invest $2.3bn in Mustang Express Pipeline

ARM Energy Holdings, LLC (ARM) has announced a final investment decision (FID) on its 236 mile, 42-inch Mustang Express Pipeline. The USD 2.3bn project benefits from an anchor shipper commitment from Sempra Infrastructure to provide natural gas for its Port Arthur LNG Phase 2 project, which recently achieved FID. Mustang Express Pipeline will be constructed and operated by ARM Energy, along with its financial partners, Pacific Investment Management Company (PIMCO) and associated co-investors.

The pipelines will have a total capacity of 2.5 billion cubic feet per day (bcf/d) and are expected to be completed in late 2028 or early 2029. The Mustang Express Pipeline will include the following primary segments:

Cougar Lateral: 55 miles from the Tres Palacios Storage to the Katy Hub in Katy, Texas

Mustang Mainline: 178 miles from the Katy Hub to Port Arthur, Texas

Golden Triangle / Spindletop Storage Lateral: Three miles around Port Arthur, Texas

The Mustang Express Pipeline has also secured all of the required steel and compression necessary for the project. Jindal Tubular USA will provide the mill capacity and Solar Turbines Inc. will provide the turbines for the three planned compressor stations. The gas-driven compressor stations will have a total capacity of 300,000 horsepower.

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