Entergy Corporation and Energy Transfer entered into a 20‑year natural‑gas transportation agreement that will deliver 250,000 MMBtu per day to North Louisiana beginning in February 2028 and continuing through January 2048. The contract includes a 12‑mile lateral on Energy Transfer’s Tiger Pipeline, adding up to 1 Bcf/d of transport capacity.
The agreement secures a long‑term fuel supply for Entergy Louisiana’s planned combined‑cycle combustion turbine plants, including two in Richland Parish and one at Waterford. It aligns with the Louisiana 100 Plan and supports Meta’s $10 billion hyperscale data center, ensuring reliable power for the state’s growing data‑center economy. The deal is already factored into Entergy’s financial plan, providing a predictable cost base for capital expenditures.
Energy Transfer gains a stable, fee‑based revenue stream over two decades, reinforcing its midstream growth strategy and expanding the Tiger Pipeline’s reach. The lateral adds 1 Bcf/d capacity, enhancing network flexibility for future data‑center and power‑generation customers.
Entergy’s Q2 2025 earnings showed solid performance with increased earnings per share and affirmed guidance, reflecting the company’s ability to manage costs while investing in new generation assets. The new agreement supports that trajectory by locking in a reliable supply and reducing exposure to market price volatility.
Energy Transfer’s Q3 2025 results reported net income of $1.02 billion, a slight decline from the prior year, amid concerns over debt levels and margins. The long‑term contract offsets these headwinds by providing predictable fee income and positioning the company to capture growing demand from data‑center developers such as Oracle and CloudBurst.
Phillip May, President and CEO of Entergy Louisiana, emphasized that the partnership with Energy Transfer ensures fuel security for the new plants and supports the state’s economic growth. He noted that securing gas supply now allows Entergy to focus on grid resilience and affordability for customers.
The agreement also satisfies regulatory approvals from the Louisiana Public Service Commission, which authorized the generation and transmission resources needed for Meta’s data center, further aligning the deal with state policy goals.
Overall, the 20‑year contract represents a strategic alignment between a utility and a midstream operator, delivering long‑term value to both companies and the regional economy by ensuring reliable natural gas supply for power generation and data‑center operations.
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