Energy Transfer (ET) Halts the Development of Lake Charles LNG Facility

Energy Transfer LP (NYSE:ET) is included among the 10 Best Natural Gas Stocks to Buy Right Now.

Energy Transfer LP (NYSE:ET) is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint across all major US production basins.

Energy Transfer LP (NYSE:ET) announced on December 18 that it is suspending development of its Lake Charles LNG export facility in Louisiana, amid fears of a looming LNG supply glut next year. Instead, the company wants to focus its attention and funds on the natural gas pipelines, which it believes is a more lucrative business.

The strategic decision comes as Energy Transfer LP (NYSE:ET) still sees itself as a pipeline operator rather than an LNG-focused company, especially with LNG margins getting squeezed due to lower prices. In this regard, the company also announced it would increase the transportation capacity of its planned Transwestern pipeline expansion to meet significant regional growth demand. The diameter of the Desert Southwest project’s main pipeline will be raised from 42 to 48 inches, increasing its capacity to as much as 2.3 billion cf/day. As a result, the project cost has increased to $5.6 billion from $5.3 billion.

Energy Transfer LP (NYSE:ET) also continues to benefit from the rising energy demand amid the ongoing AI boom, and over the last few months, the company has announced several agreements with hyperscalers to provide their data centers with natural gas.

While we acknowledge the potential of ET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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