Question · Q3 2025
Jean Ann asked why Energy Transfer primarily focuses on gas supply for hyperscalers rather than expanding into power generation itself. She also inquired about the current gas storage rates and the potential for further brownfield storage expansions in the U.S., especially with future LNG startups, and whether Bethel is a unique case.
Answer
Mackie McCrea (Co-CEO) stated that power generation projects typically offer low double-digit or high single-digit returns, which do not meet Energy Transfer's desired rate of return criteria. He expressed bullishness on gas storage value due to LNG and data center reliability needs, highlighting their 233 Bcf capacity and Bethel expansion, but emphasized disciplined, project-backed expansions rather than speculative builds.
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