Midstream energy companies are advancing billions of dollars in pipeline and natural gas infrastructure projects as they position for rising power demand, export growth and renewed production activity across key US basins, UBS strategists said in a note on Thursday.
UBS analysts said that TC Energy, Enterprise Products Partners (EPD) and DT Midstream (DTM) highlighted continued investment opportunities, citing expanding natural gas demand, artificial intelligence-driven efficiency gains and long-term infrastructure needs as key growth drivers.
TC Energy plans to sanction between CA$6 billion ($4.28 billion) and CA$8 billion of new projects in 2026, including its Crossroads pipeline initiative, which represents about CA$1 billion of investment.
The energy firm has signed precedent agreements with several anchor customers for Crossroads and is in advanced discussions with additional potential shippers. TC Energy expects to make a final investment decision on the project in Q4.
TC Energy is also pursuing artificial intelligence initiatives aimed at improving operational efficiency, targeting about CA$100 million in incremental EBITDA benefits in 2026.
Management said it has already achieved about half of that target and expects to provide further details later in the year.
TC Energy said it sees opportunities to expand within its existing portfolio in Mexico rather than pursue major new investments in the near term.
Enterprise Products raised its 2026 growth capital expectations to between $2.9 billion and $3.4 billion, up from its previous estimate of $2.5 billion to $2.9 billion.
The energy firm said the increase reflects early spending on long-lead items for several projects, including Midland Plant 11, Delaware Plant 13 and Frac 15.
Enterprise expects growth capital spending in 2027 to remain around $3 billion, with about 80% allocated to projects that have already been sanctioned or publicly announced.
The company's management said a recovery in Permian Basin production following recent curtailments would be a long-term positive for the region.
Enterprise expects to benefit from increased processing activity and higher equity gas production even if producers do not require significantly higher Waha gas prices to bring additional volumes online.
The energy firm is also expanding sour gas infrastructure, with construction underway on Train 5 at its Dark Horse facility acquired from Pinon Midstream, while evaluating the potential addition of Train 6.
Meanwhile, DT Midstream said its proposed Midwestern Interstate System Transmission project could enter service as early as the end of 2029.
The company said the scale and capital requirements of MIST are comparable to its G3 project, with the pipeline expected to benefit from its strategic location near major demand centers and access to multiple supply sources.
DT Midstream highlighted the system's connectivity to pipelines including Vector, Alliance, Texas Gas and Tennessee Gas, while potential expansions of Rockies Express Pipeline and Borealis could provide additional supply options.
The company said the strategic value of the Midwestern asset would make replacement costs significantly higher than its current installed value, potentially three to four times greater, supporting longer contract renewal periods.
The energy firm expects additional opportunities on its Millennium pipeline system as Enbridge's (ENB) Beacon project advances.
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