As America’s power appetite surges, Entergy is making a long-term bet on natural gas.
The Louisiana-based utility has signed a 20-year transportation agreement with pipeline operator Energy Transfer LP to deliver gas to North Louisiana beginning in 2028. The deal, announced Tuesday, will supply 250,000 million British thermal units (MMBtu) per day through 2048—fueling new Entergy power plants and supporting industrial customers, including Meta’s data center in Richland Parish.
The arrangement gives Entergy the option to expand delivery capacity in the years ahead, anticipating record electricity growth across the Gulf South. The U.S. Energy Information Administration projects electricity demand to climb sharply through 2026, led by artificial intelligence and cloud computing loads that are testing regional grid capacity.
“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,” Entergy Louisiana president and CEO Phillip May said in a statement.
“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.”
Entergy described the deal as part of its broader plan to ensure reliable power for customers and large-scale digital infrastructure.
A Deal Built for the AI Era
Utilities across the country are signing similar long-term supply agreements as data centers, EV charging networks, and manufacturing expansions push electricity use to levels unseen in decades.
In Louisiana, Meta’s new campus joins a wave of energy-intensive projects—each requiring round-the-clock power that renewables alone can’t yet guarantee.Energy Transfer’s system will connect those customers to firm gas supply via the company’s existing Gulf Coast network. Deliveries are expected to begin in February 2028, extending through January 2048, according to filings reviewed by Reuters.
The timing reflects how utilities now plan for both immediate reliability and long-range load growth. Natural gas, despite its carbon footprint, remains the sector’s go-to backup for balancing intermittent solar and wind generation.
A Broader Utility Trend
Entergy isn’t alone. Across the U.S., utilities are re-evaluating their fuel mixes as data centers reshape local load forecasts. Duke Energy, Georgia Power, and the Tennessee Valley Authority have all advanced plans for new gas-fired capacity alongside renewable additions.
The Energy Transfer deal situates Entergy within that evolving framework—a regulated utility adapting to a digital economy moving faster than policy timelines. The agreement offers Entergy security in an unpredictable market: fixed transport capacity, stable supply, and flexibility to scale up.
For Energy Transfer, it’s a multi-decade revenue stream from one of the South’s largest utilities. For Entergy’s customers, it’s a promise of reliability in an era of record growth — and a reminder that the clean energy transition will be built one long-term deal at a time.
