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Energy Transfer sees surge in requests from power plants, data centers
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Energy Transfer sees surge in requests from power plants, data centers
Nov 9, 2024 11:48 AM

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.

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