Energy Transfer LP has taken final investment decision (FID) on its 1.2-bcfd, 215-mile South Mississippi pipeline project, having secured sufficient long-term, demand-based transportation agreements to support its construction. The 36-in. OD pipeline will likely be 51% owned and operated by Energy Transfer, with the remaining ownership coming from shippers, the company said in its third-quarter 2026 earnings report.

A binding open season is underway to solicit additional customer commitments and determine final pipeline sizing and capacity. Energy Transfer expects South Mississippi—running from a connection near the Perryville hub in northeastern Louisiana to an interconnect with Florida Gas Transmission in southern Mississippi—to enter service in 2030.

In Energy Transfer’s earnings conference call, co-chief executive officer Mackie McCrea said that South Mississippi would “drive other upstream opportunities” for the company, noting that “one of the contracts supporting [the pipeline]” was “a long-term deal starting in 2029 for capacity out of Marcellus Utica down our Panhandle trunkline.

The company gathered and shipped record volumes of natural gas in third-quarter 2026. Gathered volumes were up 6% year-on-year and intrastate volumes increased 14%, the latter helped by the 1.5-bcfd Phase I of the Hugh Brinson pipeline entering service on Sept. 1, 2026. The company expects completion of Phase II (700 MMcfd) in first-quarter 2027.

Energy Transfer in third-quarter 2026 also completed a 250-MMcfd expansion of its Rover pipeline system to support a 15-year agreement with a Marcellus producer. The capacity became active Nov. 1.

The company further announced plans for its 200-MMcfd Bear II cryogenic gas processing plant, to be sited in Delaware basin adjacent to its existing Bear plant and expected to enter service third-quarter 2027. Energy Transfer last month placed its 275-MMcfd Mustang Draw II processing plant into service in Midland basin. On the other end of the process, Energy Transfer will build its tenth fractionator, the 200,000-b/d Frac X, at Mont Belvieu, Tex., to be in service first-half 2029.

Energy Transfer reported third-quarter 2026 net income attributable to partners of $1.21 billion compared with $1.02 billion a year earlier.