Energy Transfer sees surge in requests from power plants, data centers
Recasts throughout with commentary from conference call
By Georgina McCartney
HOUSTON, Nov 6 (Reuters) -Midstream company Energy Transfer ET.N on Wednesday said it has received requests for connections to more than 90 power plants and data centers that could total some 16 billion cubic feet per day (bcf/d) of new natural gas demand.
Energy-hungry data centers needed to expand technologies like artificial intelligence are expected to account for8% of power demand in the U.S. by 2030, compared with 3% in 2022, according to a Goldman Sachs report in May.
Pipeline and storage operator Energy Transfer has received requests to connect to over 40 prospective data centers across ten states, which could consume up to 10 bcf/d of natural gas, the company said on a company earnings call.
It has received requests from more than 45 power plants, which could total another 6 bcf/d of natural gas demand.
"We are already seeing increasing power needs across several of our natural gas pipelines, driven by AI data center and power plant growth," said co-Chief Executive Officer Tom Long.
Energy Transfer's pipelines lay within a couple of miles of some of the new power plants and data centers that are potentially set to be built, executives said.
Co-CEO Marshall McCrea warned the company would not likely take on all of the requests it had received.
"Do we expect to get 16 bcf/d? No, we do expect to get our fair share," said McCrea, acknowledging competition from other midstream companies hoping to cash in on the rising demand.
The Texas-based company reportedhigher third-quarterprofit on Wednesday as it transported record volumes of crude oil on its systems. It reportednet income of $1.18 billion versus $584 million in the third quarter of last year.
The company saw exported crude volumes jump 49% compared with the same period last year, while crude transportation volumes were up 25%, hitting a partnership record.
Energy Transfer to buy Crestwood in $7.1 billion pipeline deal nL4N39X2JG
Reporting by Georgina McCartney in Houston; Editing by Chris Reese and Christian Schmollinger
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
