Entergy’s subsidiary and pipeline operator Energy Transfer have entered into a 20-year agreement to supply natural gas to North Louisiana, the companies announced on Tuesday. The agreement aims to support rising energy needs in the region amid a sharp increase in U.S. power demand, particularly driven by data centers. According to estimates from the U.S. Energy Information Administration, national electricity consumption is expected to reach record levels in 2025 and 2026 as the expansion of energy-intensive digital infrastructure accelerates.

The logo of Argentina's state energy company YPF is seen at a gas station, in Buenos Aires, Argentina February 10, 2021.

Under the new contract, Energy Transfer will deliver 250,000 million British thermal units (MMBtu) of natural gas per day beginning in February 2028, continuing through January 2048. The supply will serve Entergy’s new power generation facilities and major commercial projects, including Meta’s data center in Richland Parish, Louisiana. The companies stated that the arrangement will help ensure reliable energy delivery to support regional economic development and meet the growing electricity needs of both residential and industrial customers.

The agreement also includes an option for Entergy to expand delivery capacity in the future, allowing flexibility to respond to potential increases in energy demand. Energy Transfer emphasized that its extensive pipeline network will provide stable and cost-efficient transportation, while Entergy highlighted that the gas supply will contribute to improving power reliability and system resilience across its Louisiana operations.

Both companies noted that the project aligns with broader trends in the U.S. power sector, where natural gas continues to play a central role in supporting electricity generation amid the rapid growth of data centers and technology-related facilities. The partnership reflects the increasing collaboration between utility providers and infrastructure companies to secure long-term energy resources capable of sustaining future consumption growth.

Energy Transfer, one of the largest pipeline operators in the United States, manages an extensive network that transports natural gas, crude oil, and refined products across multiple regions. Entergy, based in Louisiana, serves more than 3 million customers in the Gulf South and continues to invest in power generation and transmission projects designed to meet the evolving needs of communities and industries.

Through this 20-year agreement, both companies aim to strengthen North Louisiana’s energy infrastructure, ensuring adequate fuel supply for power generation and industrial development. The initiative underscores their shared commitment to reliable energy delivery, long-term investment, and regional economic growth.