ARM Energy reaches final investment decision on $2.3 billion Mustang Express Pipeline

ARM Energy and PIMCO Announce $2.3 Billion Investment in Mustang Express Pipeline. (Image: Arm Energy)

ARM Energy Holdings LLC has reached a final investment decision (FID) on the Mustang Express Pipeline, a 236-mile, 42-inch natural gas line designed to connect key Texas gas markets with growing LNG export capacity on the Gulf Coast. The $2.3 billion project will be developed and operated by ARM Energy in partnership with Pacific Investment Management Co. (PIMCO) and associated co-investors.

The Mustang Express project will transport up to 2.5 billion cubic feet per day (Bcf/d) of natural gas from the Katy Hub west of Houston to Sempra Infrastructure’s Port Arthur LNG Phase 2 development in Jefferson County, Texas. Sempra recently achieved its own FID on the Phase 2 expansion, which will add roughly 13 million tonnes per annum (MTPA) of liquefaction capacity.

“Developing the Mustang Express Pipeline represents a major milestone in our growth and reinforces our commitment to quality, large-scale customers like Sempra Infrastructure,” said Zach Lee, chief executive officer of ARM Energy. “By linking two of the most prolific natural gas-producing regions in the U.S. directly to LNG export facilities in Texas, we are helping ensure a reliable supply of natural gas for liquefaction and export with a route that crosses four storage facilities—delivering positive impacts for global energy needs and Texas communities.”

Key route and design features

The Mustang Express Pipeline will include three primary segments:

• Cougar Lateral: 55 miles connecting the Tres Palacios Storage facility to the Katy Hub in Katy, Texas.
• Mustang Mainline: 178 miles running from the Katy Hub to Port Arthur.
• Golden Triangle/Spindletop Storage Lateral: A three-mile segment providing local interconnectivity around Port Arthur.

Once complete, the system will provide a direct, high-capacity route from South and East Texas gas production areas to LNG export terminals, while also improving access to four major storage facilities along the way.

Construction is expected to begin in 2026, with commercial service targeted for late 2028 or early 2029.

ARM Energy has already secured the steel and compression required for the project. Jindal Tubular USA will supply the pipe, and Solar Turbines Inc. will provide the turbines for three planned compressor stations totaling 300,000 horsepower. The compressor stations will be gas-driven, consistent with industry practice for long-haul transmission systems of this scale.

Financing and strategic partnerships

The Mustang Express project is being jointly financed by ARM Energy and its partners, including PIMCO, which has expanded its portfolio of energy infrastructure investments in recent years.

“PIMCO is pleased to support the development of the Mustang Express Pipeline,” said Adam Gubner, managing director and portfolio manager at PIMCO. “This reflects our commitment to invest in infrastructure to support LNG expansion in the U.S., while also providing compelling long-term investment opportunities for our clients looking for attractive risk-adjusted returns.”

The project’s anchor shipper, Sempra Infrastructure, will utilize Mustang Express to move feed gas to its Port Arthur LNG Phase 2 terminal. The first phase of Port Arthur LNG—also under construction—is one of several large-scale Gulf Coast projects underpinning a new wave of U.S. LNG capacity aimed at meeting growing global demand for natural gas.

With multiple pipeline interconnections and storage links, Mustang Express is designed to enhance reliability for LNG facilities and provide new market access for producers across Texas.

The pipeline’s announcement comes amid continued growth in U.S. LNG export capacity and associated midstream infrastructure. Industry analysts project that Gulf Coast LNG capacity could exceed 150 million tonnes per year by 2030, driving demand for new high-volume feed gas pipelines.

For ARM Energy, the Mustang Express project builds on its existing portfolio of midstream and marketing assets and demonstrates the company’s ability to execute large-scale infrastructure alongside institutional capital partners.

Headquartered in Houston, ARM Energy operates across every sector of the North American energy value chain, with offices in Calgary, Denver, Los Angeles and Nashville. The company is active in pipeline development, gas marketing, storage optimization, and energy trading across key supply centers.

Next steps

ARM Energy will conduct an open season later this month to allocate remaining capacity on the Mustang Express Pipeline. The company said the open season will allow additional producers, marketers and industrial customers to secure long-term transportation agreements in advance of construction.

Once in service, Mustang Express will form a major new link between the Texas Gulf Coast’s LNG corridor and upstream production hubs, contributing to what ARM Energy describes as a “highly interconnected” gas transport system supporting both U.S. energy exports and domestic supply reliability.