ARM Energy Holdings, a Houston-based energy infrastructure investor, announced its $2.3 billion Final Investment Decision to develop a 236-mile pipeline network to deliver natural gas to Sempra’s Port Arthur LNG Phase 2 export facility.
Sempra announced its FID for Port Arthur LNG Phase 2 in September alongside a $7 billion commitment in exchange for a 49.9 percent stake from a consortium led by Blackstone Credit & Insurance, KKR and Goldman Sachs.
The pipeline project, known as the Mustang Express, consists of three conjoined pipelines that will have the collective capacity to move 2.5 billion cubic feet of natural gas per day. Construction is expected to be completed in late 2028 or early 2029. The network, to be built alongside Pacific Investment Management Company and other equity investors, includes:
- Cougar Lateral — a 55-mile line from Tres Palacios Storage to the Katy Hub
- Mustang Mainline — a 178-mile line from the Katy Hub to Port Arthur, and
- Golden Triangle/Spindletop Storage Lateral — a three-mile local delivery system to points around Port Arthur
The system is planned to include three compressor stations. ARM said it has already secured the required steel and compression components for the project from Jindal Tubular USA and Solar Turbines Inc. The compressors will have a collective capacity of 300,000 hp.
Said Zach Lee, CEO of ARM Energy: “By linking two of the most prolific natural gas-producing regions in the U.S. directly to LNG export facilities in Texas, we are helping ensure a reliable supply of natural gas for liquefaction and export with a route that crosses four storage facilities — delivering positive impacts for global energy needs and Texas communities.”
David Cooke, based in Houston, is general counsel for ARM Holdings. Vinson & Elkins advised ARM as outside legal counsel.
The Vinson & Elkins team was led by partner Benji Barron (Houston) and senior associate Matt Fiorillo (Houston) with counsel Andy Beach (Washington, D.C.).
Assistance was provided by Joshua Payne (Houston) with Winston Skinner (Austin) and Ryan Hoeffner (Houston) on energy regulatory issues; Jason McIntosh (Houston) and David Lubin (New York) on tax; Stephanie Coco (Houston), Jake Silver (Washington, D.C.) and Patience Li (Houston) on corporate; Mark Holmes (Houston), Litian Chen (Houston), Rustin Brown (Washington, D.C.) and Cam Viney (Washington, D.C.) on finance; Joyce Adetutu (Houston) on sanctions; Brandon Tuck (Houston) on environmental issues; Patricia Adams (New York) on compensation and benefits, and Hill Wellford (Washington, D.C.) and Jamie Leader (Houston) on litigation.