ARM Energy announced on Thursday, October 9, that it will move forward with a $2.3 billion natural gas pipeline in Southeast Texas, marking another major investment in the state’s booming liquid natural gas (LNG) sector.

The Houston-based company and its financial partner, Pacific Investment Management Company (PIMCO), are backing the 236-mile Mustang Express pipeline projected to transport up to 2.5 billion cubic feet of natural gas daily from the Bay City area to the LNG export hub in Port Arthur.

The pipeline consists of two main segments: a 55-mile line from Tres Palacios Storage to the Katy Hub and a 178-mile mainline from the Katy Hub to Port Arthur.

"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," ARM Energy CEO Zach Lee said in a statement.

Much of the transported gas is intended for Sempra Infrastructure's $14 billion Port Arthur LNG Phase 2 project, which serves growing demand in European and Asian markets.

With the construction of the Mustang Express scheduled for completion by early 2029, the project joins a growing list of new energy infrastructure in the region.

Early this year, Kinder Morgan approved the construction of its 216-mile Trident Intrastate Pipeline, also connecting the Houston area to Port Arthur, partly to supply power to new data centres.

In August, WhiteWater Midstream also gained approval for the 450-mile Eiger Express pipeline, designed to move gas from the Permian Basin to the Texas coast.