Energy Transfer sees surge in requests from power plants, data centers.
Midstream company Energy Transfer (ET.N), opens new tab 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 for 8% 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.
Tom Long, co-Chief Executive Officer, said:
We are already seeing increasing power needs across several of our natural gas pipelines, driven by AI data center and power plant growth.
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.
Marshall McCrea, acknowledging competition from other midstream companies hoping to cash in on the rising demand:
Do we expect to get 16 bcf/d? No, we do expect to get our fair share.
The Texas-based company reported higher third-quarter profit on Wednesday as it transported record volumes of crude oil on its systems. It reported net 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.
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Energy Transfer sees surge in requests from power plants, data centers. source
