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Can NFG's Pipeline & Storage Expansion Projects Unlock Future Growth?
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Key Takeaways
NFG is expanding pipeline and storage assets to boost capacity, reliability and regulated earnings.
Tioga Pathway and Shippingport Lateral are expected to add 395,000 Dth/day of capacity in late 2026.
NFG plans $210-$250M in fiscal 2026 Pipeline & Storage spending to support rate base growth.
National Fuel Gas (NFG - Free Report) is strengthening its pipeline network through pipeline and storage expansion projects and ongoing infrastructure modernization. These investments expand transportation capacity, enhance pipeline reliability and drive long-term regulated earnings growth.
National Fuel Gas is progressing with the Shippingport Lateral and Tioga Pathway expansion projects, both of which are expected to begin service in late 2026. Tioga Pathway is expected to provide 190,000 dekatherms per day (Dth/day) of capacity, while Shippingport Lateral is projected to add 205,000 Dth/day of transportation capacity. The company has launched the Line N System Upgrade Project, which will add 94,000 Dth/day of transportation capacity under a long-term contract with an investment-grade customer. The project replaces aging pipelines, improves system reliability and is expected to begin service in late 2028, supporting stable long-term cash flows.
National Fuel Gas aims to invest in the $210-$250 million range in Pipeline & Storage projects in fiscal 2026, supporting 5-7% long-term rate base growth and driving steady earnings expansion. NFG currently has 77 billion cubic feet (Bcf) of natural gas storage capacity and specializes in underground storage of natural gas.
According to the U.S. Energy Information Administration (“EIA”), nearly 44.9 bcf per day of new pipeline capacity is planned for 2026-2027. Favorable industry trends and NFG's disciplined capital investment plans are expected to support long-term Pipeline & Storage expansion and earnings growth.
Investments in Pipeline & Storage Boost Midstream Operations
According to the U.S. EIA, pipeline investments enhance transportation efficiency, reduce bottlenecks and improve energy delivery reliability. These investments also support rising oil and natural gas production, strengthen long-term fee-based cash flows and enhance connectivity among production regions, storage facilities and end markets.
Kinder Morgan (KMI - Free Report) is expanding its natural gas network through the Gulf Coast Express expansion, South System Expansion, Trident and Mississippi Crossing, increasing pipeline capacity, meeting rising power demand and supporting fee-based growth.
Energy Transfer LP (ET - Free Report) continues to expand its natural gas pipeline network through the Desert Southwest Pipeline, Hugh Brinson Pipeline and Mustang Draw projects, increasing transportation capacity and supporting EBITDA and cash flow growth.
NFG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates an increase of 9.70% and 4.98%, respectively, year over year.
Image Source: Zacks Investment Research
NFG’s Returns on Equity (ROE)
National Fuel Gas' trailing-12-month ROE is 20.62%, higher than the industry average of 10.94%.
Image Source: Zacks Investment Research
NFG’s Stock Price Performance
In the past month, the company’s shares have risen 4.2% against the industry’s 6.3% fall.
View the Zacks #1 Rank List
Image: Bigstock
Can NFG's Pipeline & Storage Expansion Projects Unlock Future Growth?
Key Takeaways
National Fuel Gas (NFG - Free Report) is strengthening its pipeline network through pipeline and storage expansion projects and ongoing infrastructure modernization. These investments expand transportation capacity, enhance pipeline reliability and drive long-term regulated earnings growth.
National Fuel Gas is progressing with the Shippingport Lateral and Tioga Pathway expansion projects, both of which are expected to begin service in late 2026. Tioga Pathway is expected to provide 190,000 dekatherms per day (Dth/day) of capacity, while Shippingport Lateral is projected to add 205,000 Dth/day of transportation capacity. The company has launched the Line N System Upgrade Project, which will add 94,000 Dth/day of transportation capacity under a long-term contract with an investment-grade customer. The project replaces aging pipelines, improves system reliability and is expected to begin service in late 2028, supporting stable long-term cash flows.
National Fuel Gas aims to invest in the $210-$250 million range in Pipeline & Storage projects in fiscal 2026, supporting 5-7% long-term rate base growth and driving steady earnings expansion. NFG currently has 77 billion cubic feet (Bcf) of natural gas storage capacity and specializes in underground storage of natural gas.
According to the U.S. Energy Information Administration (“EIA”), nearly 44.9 bcf per day of new pipeline capacity is planned for 2026-2027. Favorable industry trends and NFG's disciplined capital investment plans are expected to support long-term Pipeline & Storage expansion and earnings growth.
Investments in Pipeline & Storage Boost Midstream Operations
According to the U.S. EIA, pipeline investments enhance transportation efficiency, reduce bottlenecks and improve energy delivery reliability. These investments also support rising oil and natural gas production, strengthen long-term fee-based cash flows and enhance connectivity among production regions, storage facilities and end markets.
Kinder Morgan (KMI - Free Report) is expanding its natural gas network through the Gulf Coast Express expansion, South System Expansion, Trident and Mississippi Crossing, increasing pipeline capacity, meeting rising power demand and supporting fee-based growth.
Energy Transfer LP (ET - Free Report) continues to expand its natural gas pipeline network through the Desert Southwest Pipeline, Hugh Brinson Pipeline and Mustang Draw projects, increasing transportation capacity and supporting EBITDA and cash flow growth.
NFG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates an increase of 9.70% and 4.98%, respectively, year over year.
Image Source: Zacks Investment Research
NFG’s Returns on Equity (ROE)
National Fuel Gas' trailing-12-month ROE is 20.62%, higher than the industry average of 10.94%.
Image Source: Zacks Investment Research
NFG’s Stock Price Performance
In the past month, the company’s shares have risen 4.2% against the industry’s 6.3% fall.
Image Source: Zacks Investment Research
NFG’s Zacks Rank
NFG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.