Entergy Louisiana and Energy Transfer Partner on 20-Year Agreement to Strengthen Energy Reliability and Economic Growth in North Louisiana
Entergy Louisiana and Energy Transfer LP (NYSE: ET) have announced a landmark 20-year natural gas firm transportation agreement designed to enhance energy reliability, affordability, and economic development across North Louisiana. This collaboration underscores a shared commitment to fueling the state’s industrial and technological growth, including supporting the next generation of energy-efficient infrastructure and data-driven innovation.
A Long-Term Commitment to Reliable and Affordable Energy
Under the terms of the agreement, Energy Transfer will provide Entergy Louisiana with 250,000 MMBtu per day of firm natural gas transportation service starting in February 2028. This service will continue through January 2048, ensuring two decades of secure energy supply for one of the fastest-growing regions in the state. The contract structure also includes an option for Entergy Louisiana to expand its delivery capacity in the future, a strategic measure aimed at meeting increasing demand as both industrial and residential energy needs rise.
This long-term partnership positions Louisiana at the forefront of energy reliability and sustainable development in the southern United States. With stable natural gas transportation capacity secured, Entergy Louisiana can continue to support industrial expansion, emerging data center operations, and the growth of energy-intensive facilities that are vital to the state’s economy.
Powering Clean, Efficient Energy Generation
The natural gas supplied under this agreement—already incorporated into Entergy’s financial and operational plans—will be used to fuel the company’s combined-cycle combustion turbine (CCCT) facilities. These advanced plants are being developed to deliver cleaner, more efficient power to Entergy’s customers.
Combined-cycle technology represents a key element of Entergy Louisiana’s broader strategy to modernize its generation fleet. By capturing and reusing heat that would otherwise be wasted in traditional plants, CCCT systems achieve higher efficiency and significantly lower carbon emissions. The new facilities are expected to serve as a reliable backbone for Louisiana’s energy transition—delivering affordable power while supporting the state’s industrial and digital transformation.
Notably, this agreement will also help power transformative projects such as Meta’s new hyperscale data center in Richland Parish. Data centers, which are integral to the digital economy and artificial intelligence innovation, require large, stable, and efficient energy supplies. Entergy’s collaboration with Energy Transfer ensures that Louisiana will be well-positioned to attract and support such energy-intensive investments.
Expanding Infrastructure for Future Growth
To deliver the required natural gas volumes, Energy Transfer plans to expand its existing Tiger Pipeline system. The project involves constructing a 12-mile lateral pipeline capable of transporting up to 1 billion cubic feet per day (Bcf/d). This lateral will connect Entergy Louisiana’s facilities directly to Energy Transfer’s extensive network, which is linked to all major natural gas-producing basins across the United States—including the Permian Basin, Haynesville Shale, and Marcellus Shale.
This infrastructure expansion reflects Energy Transfer’s ongoing strategy of leveraging its nationwide assets to meet regional energy needs efficiently. The company’s interconnected pipeline network offers both flexibility and security of supply, reducing potential risks from market volatility or regional disruptions.
By expanding the Tiger Pipeline, Energy Transfer also contributes to local employment and economic activity during the construction phase. Pipeline projects of this scale typically generate hundreds of temporary jobs, as well as long-term maintenance and operations roles. Furthermore, improved energy infrastructure attracts additional industrial investment to the region, creating a ripple effect of economic benefits across North Louisiana.
Leadership Perspectives on a Sustainable Energy Future
Phillip May, president and CEO of Entergy Louisiana, emphasized the strategic nature of the partnership:
“This agreement is another example of how we’re making smart, long-term investments to ensure reliable, affordable power for our customers while supporting major economic development projects across our state,” said May. “Working with partners like Energy Transfer allows us to secure the fuel supply needed to power critical facilities like the ones in northern Louisiana and support our state’s growth for decades to come.”
Energy Transfer executives echoed this sentiment, highlighting the company’s role in providing secure and scalable infrastructure solutions to meet future energy challenges. As the U.S. energy landscape evolves—with growing demand from manufacturing, artificial intelligence, and digital infrastructure—collaborations between energy producers, utilities, and industrial users are becoming increasingly vital.
Strengthening Louisiana’s Role in the National Energy Economy
This agreement reinforces Louisiana’s role as a key hub in the nation’s energy ecosystem. The state already ranks among the top energy producers and exporters in the United States, benefiting from its robust infrastructure, port facilities, and access to Gulf Coast resources. By securing additional firm transportation capacity and expanding its natural gas infrastructure, Louisiana is poised to lead in both energy reliability and innovation.
The partnership also supports the state’s ongoing economic diversification. Beyond traditional energy and petrochemical industries, Louisiana is emerging as a center for data processing, artificial intelligence, and advanced manufacturing—all of which require dependable, low-emission energy sources.
A Vision for the Future
Entergy Louisiana and Energy Transfer’s agreement represents more than just a commercial transaction—it’s a long-term investment in the state’s energy security, environmental performance, and economic future. The deal supports Entergy’s ongoing efforts to modernize its generation fleet, reduce emissions, and align with Louisiana’s broader sustainability goals.
As industries continue to evolve and digital transformation accelerates, the demand for efficient, resilient, and affordable power will only grow. This collaboration demonstrates how utility providers and infrastructure companies can work together to ensure that Louisiana remains a leader not just in traditional energy production, but also in powering the industries of tomorrow.
In essence, this 20-year agreement serves as a cornerstone for Louisiana’s next chapter of growth—combining the strengths of two energy leaders to deliver reliable natural gas, foster clean energy generation, and enable long-term prosperity across North Louisiana and beyond.
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