HOUSTON, Nov 6 (Reuters) - Midstream company Energy
Transfer ( ET ) 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 ( ET ) 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 ( ET ) 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 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.