Energy Transfer’s $5.5 Billion 2026 Capex Plan Aims to Supercharge U.S. Natural Gas Infrastructure

Energy Transfer LP is positioning itself for a strong growth year in 2026 with a strategic capital expenditure program expected to reach as much as $5.5 billion, focused on expanding and strengthening its U.S. natural gas infrastructure. The midstream energy company’s investment outlook signals confidence in long-term demand for domestic gas transportation and processing as energy markets continue to evolve.

In its 2026 outlook, Energy Transfer said it plans to allocate between $5.0 billion and $5.5 billion toward growth capital projects. This represents a notable increase from prior years and reflects a more targeted emphasis on projects expected to deliver attractive returns. The majority of this spending will support the expansion and modernization of natural gas pipelines and processing facilities, reinforcing the company’s core midstream operations.

Rather than pursuing new liquefied natural gas export developments, Energy Transfer is shifting its focus away from LNG amid concerns about potential global oversupply. This strategic adjustment includes halting development of the Lake Charles LNG export project and highlights a broader reassessment of market conditions and risk management within the natural gas sector.

Several large-scale infrastructure projects underpin the company’s 2026 capital plan. These include expansions at the Nederland Flexport NGL terminal and the Mustang Draw I and II processing facilities in the Permian Basin. Together, these investments are expected to significantly enhance liquids handling and processing capacity in one of the most productive energy regions in the United States. Additional pipeline expansions are also planned to meet rising demand from industrial customers and fast-growing power users such as data centers in Texas, underscoring the growing link between energy infrastructure and the digital economy.

The company’s financial outlook supports this expansion strategy. Energy Transfer expects adjusted EBITDA to range between $17.3 billion and $17.7 billion in 2026, reflecting the earnings potential of its growing asset base. The forecast also points to a continued focus on maintaining balance sheet discipline while pursuing investments that add long-term value.

Market observers note that a disciplined approach to capital spending, centered on high-return pipeline and processing projects, could strengthen operational performance and position Energy Transfer to benefit from sustained demand for U.S. natural gas transportation and processing services.

As natural gas remains a critical component of North America’s energy mix, Energy Transfer’s 2026 capital investment strategy reinforces its role as a leading midstream operator and highlights broader trends toward infrastructure-focused growth across the energy sector.