Energy Transfer's Latest Expansion Project Will Help Fuel Its More Than 7%-Yielding Dividend Through the End of the Decade

1 hour ago 7

Matt DiLallo, The Motley Fool

Mon, June 22, 2026 astatine 10:20 AM CDT 4 min read

Energy Transfer (NYSE: ET) precocious announced an further enlargement of its Nederland NGL Export Terminal. The task volition alteration the maestro constricted concern (MLP) to export much earthy state liquids (NGLs) retired of that important Gulf Coast terminal by the extremity of the decade. It's the latest enlargement of this installation and 1 of galore projects the institution has nether construction.

Here's a look astatine the caller project, which volition springiness the MLP adjacent much substance to turn its implicit 7%-yielding distribution.

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The NGL export juggernaut

Energy Transfer plans to summation the ethane export capableness of its Nederland NGL Export Terminal by 240,000 barrels per time (BPD). It besides plans to adhd different 55,000 BPD of LPG export capacity. The institution is expanding this installation owed to robust lawsuit demand. It has secured semipermanent contracts for 100% of the facility's ethane export capableness into the 2040s.

The institution expects to implicit the task successful phases starting successful 2028. It's expanding its Mont Belvieu-to-Nederland NGL export pipeline and gathering 2 further NGL vessel docks (which it expects to implicit by the mediate of 2029). The institution is already expanding its refrigerated propane and butane retention tanks (anticipated completion successful the archetypal fractional of 2027). Once complete, the Energy Transfer volition person the largest refrigerated retention capableness connected the U.S. Gulf Coast and the capableness to export much than 1.25 cardinal BPD from this facility. Add successful the company's Marcus Hook NGL Export Facility on the East Coast (which it's expanding to 420,000 BPD by mid-2027), and Energy Transfer volition person astir 1.7 cardinal BPD of NGL export capableness by the extremity of the decade.

A monolithic and increasing backlog

Energy Transfer's latest Nederland enlargement task adds to its already extended enlargement task backlog. The pipeline institution plans to walk betwixt $5.5 cardinal and $5.9 cardinal connected enlargement projects this year.

The bulk of its projects are earthy state pipelines. Energy Transfer is investing up to $9.5 cardinal successful large state pipeline projects, led by the $5.6 cardinal Desert Southwest Pipeline (anticipated completion by the 4th fourth of 2029). It's besides gathering respective pipeline laterals to proviso state to AI information centers and gas-fired powerfulness plants. Additionally, the institution is expanding respective crude lipid and NGL pipelines, gathering further NGL infrastructure, and constructing much state processing plants.

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