With a strong focus on natural gas infrastructure, especially designed to ease bottlenecks and bolster the still growing demand for liquified natural gas (LNG) exports, midstream activity is continuing to present a positive outlook for 2026.
Overall, while new large-scale crude oil pipeline projects continue to seem unlikely in 2025, several major natural gas pipelines are under construction or nearing completion and, on the whole, activity is up compared to previous years. This is still especially true in the Permian and Haynesville basins.
Notable among these gas projects are the 3.5 Bcf/d Black Fin, the 1.8 Bcf/d Louisiana Gateway pipeline and the 2.8 Bcf/d Saguaro Connector, all expected in service by the end of 2025.
And, while there are no major crude oil pipeline awaiting announcement in 2025, there is a focus on augmenting and expanding existing infrastructure.
However, even with federal support for midstream on the rise, permitting and legal risks remain significant for projects linked to LNG exports and those located in regions with a history of environmental advocacy activities. This is especially true in the Marcellus and Utica, where ongoing bottlenecks have restricted increased production for years.
That said, analysts and midstream insiders have been expressing a modestly positive outlook for 2026, based on predicted steady growth and the robust use of assets.
Still, the sector, which is historically conservative, will be weighing the potential high cost of legal challenges to its potential projects. If the changes to the approvals process are not handled carefully it could leave companies vulnerable to court challenges.
There is also the realization that market demand over the long haul is what really drives construction of midstream projects.
Right direction
One of the good omens from early in 2025 came in the form of the reinstatement of the certificate for Williams Companies’ Transcontinental Gas Pipe Line (Transco), which in effect gave the go-ahead to the company’s Regional Energy Access (REA) expansion project, which is designed to ease supply constraints in in Pennsylvania, New Jersey and Maryland.
Another sign things were heading in the right direction for midstream came when new U.S. Interior Secretary Doug Burgum announced plans to open up more acreage for oil and gas leasing. This came with assurances that restrictions on construction of an LNG pipeline would be lifted.
Burgum said in March that Interior plans to reopen 82 percent of Alaska’s National Petroleum Reserve that is available for leasing for development and reopen the 1.56-million-acre Coastal Plain of the Arctic National Wildlife Refuge for oil and gas leasing.
Additionally, he said the administration would revoke restrictions on land along the Trans-Alaska Pipeline Corridor and Dalton Highway north of the Yukon River and convey the land to the State of Alaska, paving the way for the proposed Ambler Road and the Alaska Liquefied Natural Gas Pipeline project.
Overall, it comes as little surprise that during the past few years and into the near future, LNG initiatives for terminal construction garner the bulk of the attention worldwide which, in turn, drives new pipeline construction.
While this is increasingly true in Europe, where new pipelines are being developed to support new entry-points for gas, it’s also true in the United States, where new pipelines are needed to supply the liquefaction plants on the other side of the LNG supply chain. As LNG infrastructure continues to develop, pipeline construction will grow with it.
Permian, Haynesville basins
While most of the Permian Basin gas pipelines built in recent years have targeted LNG export markets south of the Houston area, two proposed intrastate projects have emerged that will deliver Permian Basin gas to the Texas-Louisiana border region.
Natural gas pipeline capacity in the Permian Basin also is set to grow with the start of the Matterhorn Express Pipeline during the fourth quarter. The pipeline, backed by EnLink Midstream and other stakeholders, will add 2.5 Bcf/d of takeaway capacity, transporting gas from the Permian to near Houston, Texas.
Matterhorn, a joint venture involving Whitewater, EnLink Midstream, Devon Energy, and MPLX, aims to ease the bottleneck in natural gas transportation from the Permian, where production has more than doubled since 2018. This ongoing surge has been driven mainly by associated gas from oil operations.
Beyond Matterhorn, three additional pipeline projects are underway, totaling 7.3 Bcf/d in new capacity:
Apex Pipeline (2 Bcf/d): Expected to enter service in 2026, it will transport gas from the Permian to Port Arthur, Texas, operated by Targa Resources.
Blackcomb Pipeline (2.5 Bcf/d): Set to connect Permian gas to Agua Dulce in south Texas by 2026, operated by Whitewater Midstream.
Saguaro Connector Pipeline (2.8 Bcf/d): This pipeline will move gas to the U.S.-Mexico border, linking with the Sierra Madre pipeline by 2027-28.
The Haynesville shale area has been historically a predominantly dry gas basin and recent activity has been limited by low natural gas prices. However, its fortunes were reversed when higher prices and ever-increasing demand forecasts were tied to nearby LNG plants.
Several natural gas pipeline projects are in-development to connect Haynesville gas producers to Gulf Coast LNG exporters. Momentum Midstream’s New Generation Gas Gathering (NG3) project is under construction and expected to be fully operation by early 2025. It runs from the Haynesville to coastal Louisiana LNG markets, with 275 miles of additional natural gas gathering pipelines with 2.2 Bcf/d of capacity.
Significant planned or proposed pipeline mileage is expected to start construction over the next three years in the United States. However, 86 percent of projects are concentrated in the South Central region of the country, largely in Texas and Louisiana, and that will likely be the case in coming years. The bulk of these projects are associated with a single source of demand, LNG export terminals along the Gulf Coast.
The U.S. currently has about 90 mtpa of LNG export capacity, with an additional 80 mtpa under construction. Another 141 mtpa of new capacity is considered planned and an additional 115 mtpa has been proposed.
Nearly all this new capacity will continue to be located on the U.S. Gulf Coast, and to supply it, many large pipeline projects, connecting production in the Haynesville and Permian to the coast.
These include the Louisiana Energy Access Pipeline, the Permian Highway and the NG3 project. Further LNG export capacity FIDs will drive additional pipelines, such as the Apex and Warrior pipelines, to start construction. UI