Energy Transfer LP and Entergy Louisiana entered into a 20‑year natural gas transportation agreement that will deliver 250,000 MMBtu per day of firm service beginning in February 2028 and running through January 2048. The contract includes a 12‑mile lateral on Energy Transfer’s Tiger Pipeline, which can move up to 1 Bcf per day, and gives Entergy the option to increase capacity in the future.
The deal positions Energy Transfer to supply the growing natural gas demand in North Louisiana, where Entergy’s combined‑cycle combustion turbine plants and Meta’s new hyperscale data center are slated to expand. By securing a long‑term, fee‑based contract, Energy Transfer locks in predictable cash flow and aligns with its broader strategy of acquiring low‑capital, high‑value midstream assets.
Financially, the agreement is expected to generate a steady revenue stream for Energy Transfer, complementing the company’s 2025 guidance of $16.1‑$16.5 B in adjusted EBITDA and $5 B in capital expenditures. The firm transportation service also provides a potential upside if Entergy’s demand grows, allowing Energy Transfer to capture additional capacity without significant new investment.
Entergy’s President and CEO Phillip May highlighted the partnership’s role in supporting the Louisiana 100 Plan, which aims to strengthen grid resilience and foster economic growth. Energy Transfer’s management has emphasized the importance of fee‑based contracts in maintaining profitability amid volatile commodity prices, noting that the new agreement fits within its focus on operational leverage and margin protection.
Analysts have expressed mixed views on Energy Transfer’s outlook. While some see the long‑term contract as a stabilizing factor, others point to challenges in the natural gas sector and the company’s high leverage. The agreement, however, is viewed as a strategic win that reinforces Energy Transfer’s position in a key market and supports its pipeline expansion in a region poised for power generation and data‑center development.
Overall, the 20‑year deal with Entergy Louisiana represents a significant milestone for Energy Transfer, providing a durable revenue source that dovetails with its growth strategy and strengthens its footprint in North Louisiana’s evolving energy landscape.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.