A Massive Pipeline Surge Is Underway Across the US South
The US South is entering the largest natural-gas pipeline boom in nearly two decades as developers race to build systems feeding a new generation of LNG export terminals along the Gulf Coast.
At least 12 new or expanded pipelines across Texas, Louisiana, and Oklahoma are scheduled for completion in 2026 — a roughly 13% increase in regional shipping capacity, according to Bloomberg data sourced from the US Energy Information Administration.
This will mark the biggest single-year expansion since the peak of the 2008 shale boom, adding enough transport capacity to supply all of Canada’s daily gas needs.
“This is the most activity I’ve seen in my 20 years in the industry,” said Jack Weixel of East Daley Analytics.
Why the Boom? Surging LNG Demand + Tight Permian Capacity
Though planning began years ago, the expansion now aligns with Washington’s push to cement US leadership in global energy markets. With the US already the world’s largest LNG exporter, developers like Sempra, NextDecade, Venture Global and others are investing tens of billions into new liquefaction terminals.
Those terminals require enormous upstream pipeline volumes — and the wave set for completion next year is designed to feed LNG facilities slated to begin operating in 2027–2030.
Rohan Nimmagadda of Arbo summed it up:
“Pipeline development tends to respond to LNG export capacity — not drive it.”
The boom will also relieve extreme bottlenecks in the Permian Basin, where gas production is so abundant that prices have frequently gone negative, forcing drillers to pay buyers or flare the fuel.
Permian output is so high that experts say the region needs a “mega pipeline every 16–18 months.”
The Major Projects Coming Online
The 2026 additions total 18 billion cubic feet per day, including:
Flagship Pipelines
- Rio Bravo Pipeline (Enbridge)
137 miles transporting gas to NextDecade’s Rio Grande LNG terminal in Brownsville, Texas. - Blackcomb Pipeline (Whitewater, MPLX, Enbridge, Targa)
366 miles from the Permian Basin to Gulf Coast markets. - Energy Transfer’s Hugh Brinson Pipeline
A 442-mile system from West Texas to Dallas–Fort Worth, feeding LNG facilities and power-hungry AI data centers. - Enterprise Products Partners + Exxon Mobil
Expansion of the Bahia system, which moves natural gas liquids from West Texas to Houston.
Industry insiders say these projects are fast-tracked because Texas and Louisiana provide far fewer regulatory choke points — most of the new lines avoid interstate permitting, reducing litigation risk from environmental groups.
The Bigger Energy Picture: LNG Demand Is Exploding
Global LNG consumption is expected to surge nearly 30% between 2025 and 2030, per BloombergNEF. Nations in Asia and Europe are shifting from coal to gas, treating LNG as a bridge fuel within their longer-term energy transitions.
Supporters argue that US LNG is critical to global energy security. Critics warn that long-dated export infrastructure could keep fossil-fuel use locked in for decades.
Either way — the economics are clear:
Global buyers want US gas, and Gulf Coast infrastructure is scaling to deliver it.
WSA Take
America’s pipeline buildout is entering its most aggressive phase since the shale revolution — and this time it’s tied directly to LNG exports, Permian overproduction, and the soaring electricity demand from AI and industrial reshoring.
For energy investors, this isn’t a one-off year. Another similar wave is already slated for 2027, signaling a multi-year supercycle in midstream infrastructure.
Read our recent coverage on This Thursday’s Midday Movers.
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Disclaimer:
Wall Street Access does not work with or receive compensation from any public companies mentioned. Content is for informational and educational purposes only and is not investment advice.
