Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Midstream Companies Expand Natural Gas Pipelines as LNG & AI Demand Grows

BY | ETF Database
9:49 am ET 08/07/26 | 13 VIEWS
Several midstream energy companies are expanding their natural gas pipelines through new acquisitions and project developments as they look to capture growing demand for natural gas driven by liquefied natural gas (LNG) exports and data centers.Key Takeaways Williams Companies (WMB) announced a $5.5 billion acquisition of Momentum Midstream alongside its $1.5 billion Delta Access Expansion project. Enbridge (ENB:TSE) and MPLX (MPLX) sanctioned the 2.6 Bcf/d Bay Runner Twin Pipeline to supply Permian gas to the Rio Grande LNG export terminal. TC Energy(TRP:TSE) and DT Midstream (DTM) secured expansion initiatives directly tied to regional gas-fired power generation and AI data center loads. Strategic Acquisitions and M&A ActivityThis year has seen midstream operators deploy capital to consolidate high-demand pipeline corridors. Leading the charge, Williams Companies (WMB) is set to acquire Momentum Midstream for $5.5 billion. The acquisition adds 4.05 billion cubic feet per day (Bcf/d) of capacity across three take-or-pay pipelines. The pipelines are positioned to serve growing Gulf Coast LNG, power, and industrial customers. Alongside the acquisition, Williams announced its $1.5 billion Delta Access Expansion. This 2.25 Bcf/d take-or-pay project along its Transco corridor will move Haynesville natural gas to growing Gulf Coast markets starting in early 2029.Long-Term Take-or-Pay Agreements Secure Cash FlowsDecades-long contractual commitments are common in the midstream space, helping offset risk. A joint venture, including Enbridge Inc. (ENB:TSE) and MPLX LP (MPLX), officially sanctioned the Bay Runner Twin Pipeline. The project is designed to deliver 2.6 Bcf/d of Permian gas supply to NextDecade’s (NEXT) Rio Grande LNG facility. Furthermore, the take-or-pay pipeline is scheduled to enter service by 2030. This project will add to the original 2.6 Bcf/d Bay Runner Pipeline, which is slated to begin service in the third quarter of this year.Data Centers and Power Needs Drive Regional ExpansionsHyperscale AI data centers are rapidly emerging as key consumers of natural gas power generation. TC Energy Corporation (TRP:TSE) sanctioned two expansion efforts backed by 20-year take-or-pay contracts. These include the $300 million Central Virginia Capacity Project (0.4 Bcf/d targeting 2028–2030) and the $100 million Clark Project (0.3 Bcf/d targeting 2028). Both serve natural gas-fired utilities catering to regional data centers. Similarly, DT Midstream Inc. (DTM) commercialized a new 380 million cubic feet per day (MMcf/d) interconnect on its NEXUS pipeline. The pipeline addition directly supplies a newly constructed AI data center in Ohio. For investors looking to capture the energy infrastructure aspect of growing natural gas demand, the Alerian Energy Infrastructure ETF (ENFR ) offers direct exposure to these key midstream names. Looking for midstream insights in your inbox? Subscribe here to keep a pulse on midstream investing through our weekly updates. For more news, information, and analysis, visit the Energy Infrastructure Content Hub. vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ENFR for which it receives an index licensing fee. However, ENFR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ENFR.

More Commentary

How the ETF Wrapper Unlocks Energy Stocks in FENY
BY | ETF Database
7:47 am ET 08/07/26 | 27 VIEWS
If ASML Is Awesome Again, This ETF Could Surge
BY | ETF Database
6:54 am ET 08/07/26 | 38 VIEWS
Take-Two Latest Earnings: Try These 2 ETFs Ahead of GTA 6
BY | ETF Database
10:32 am ET 08/07/26 | 11 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.