Latest News

Energy Transfer sees rise in demands from power plants, data centers

Midstream business Energy Transfer on Wednesday stated it has gotten requests for connections to more than 90 power plants and data centers that might total some 16 billion cubic feet daily (bcf/d) of brand-new gas demand.

Energy-hungry information centers required to expand technologies like expert system are expected to account for 8% of power demand in the U.S. by 2030, compared to 3% in 2022, according to a Goldman Sachs report in May.

Pipeline and storage operator Energy Transfer has gotten demands to connect to over 40 prospective information centers throughout 10 states, which could consume as much as 10 bcf/d of natural gas, the business said on a company profits call.

It has actually gotten demands from more than 45 power plants, which might amount to another 6 bcf/d of natural gas need.

We are currently seeing increasing power needs throughout several of our gas pipelines, driven by AI information center and power plant growth, said co-Chief Executive Officer Tom Long.

Energy Transfer's pipelines lay within a number of miles of a few of the brand-new power plants and data centers that are potentially set to be built, executives stated.

Co-CEO Marshall McCrea cautioned the company would not likely take on all of the demands it had gotten.

Do we expect to get 16 bcf/d? No, we do expect to get our reasonable share, stated McCrea, acknowledging competitors from other midstream business wanting to capitalize the increasing demand.

The Texas-based business reported higher third-quarter earnings on Wednesday as it transferred record volumes of crude oil on its systems. It reported earnings of $1.18 billion versus $584 million in the third quarter of in 2015.

The company saw exported crude volumes jump 49% compared with the same period last year, while crude transport volumes were up 25%, hitting a collaboration record.

(source: Reuters)