Energy Transfer LP is gauging the interest of potential customers as it weighs building a natural gas pipeline from the Permian Basin to the Gulf Coast, management said during its fourth quarter and full-year 2021 earnings call with analysts.

Energy Transfer

Citing “the growing need for additional natural gas takeaway from the Permian Basin,” co-CEO Tom Long said the project under consideration would combine new and existing pipelines to serve coastal gas hubs.

A 260-mile newbuild pipeline would extend eastward from the Midland sub-basin along existing rights-of-way, interconnecting with Energy Transfer’s existing 36-inch pipeline near Fort Worth, TX, management said.

“From there, it would interconnect with our existing assets with available capacity…to markets at Carthage, as well...