With 2026 only a few short weeks away, energy companies are planning their expansion projects across the world. MPLX, which is the midstream affiliate of Marathon Petroleum Corp. (MPC), has reported its plans to expand its already impressive sour gas capacity in the Permian Basin. The Permian is one of the largest sedimentary basins in the United States and an exemplar of the gas sector’s ability to not only adapt to an ever-increasingly volatile energy market, but has also seen massive expansion projects by several energy companies over the past few years.
MPLX has big plans to expand its growth capacity by investing in expansion projects
MPLX is an exceedingly large company that has become a stronghold for the gas sector in recent years. As the world turns its back on the conventional energy market in favor of the renewable energy sector, the company serves as a cornerstone of the transitional gas sector, not only in the United States but all over the globe as well.
In a recent earnings call, the company’s management noted its plans to increase spending on expansionary projects that strengthen the company’s footprint across several basins in the United States.
“MPLX is growing its core operations by building processing facilities on a just-in-time basis, maximizing the use of existing assets, optimizing value chains, and strengthening our strategic partnership with MPC.” – MPLX CEO Maryann Mannen
The vast majority of the company’s allocated growth capital is already spoken for
MPLX has reported that approximately 90% of its total growth capital is being allocated toward its natural gas and natural gas liquids (NGL) services segment, underlining the company’s commitment to expansion across its most valuable sector, gas. The Permian Basin is a key driver in the company’s plans for 2026 and beyond.
The company reported an acquisition that strengthens its position in the Permian Basin
This year saw MPLX acquire Northwind Midstream for $2.38 billion as the company plans a substantial expansion into the Permian Basin in New Mexico. The plan is to expand the company’s sour gas gathering and processing ability in the Basin by purchasing Northwind Midstream, crucially gaining 200,000 dedicated acres and over 200 miles of pipeline.
Northwind currently treats 150 million cubic feet per day (MMcfpd) of sour gas in the Basin and can boast two acid gas injection (AGI) wells in service at the moment, with a third being permitted. The planned expansion of the company’s assets allows Northwind’s treating capacity to increase to 440 MMcfpd by the second half of 2026.
The company has noted that the planned expansion enables it to offer faster solutions to both existing and new customers in the region. 2026 is set to be a great year if the company can navigate the expansion successfully, and all evidence points to it relying on its vast expertise to ensure a positive outcome in the Permian basin.
“The addition of 200,000 dedicated acres will increase MPLX’s access to natural gas and NGL volumes.” – MPLX CEO Maryann Mannen
The midstream gas sector has seen great performances across several key markets as the world aims to decarbonize its energy sector by the end of the decade, exemplified by the news that the EU’s gas storage has reached unprecedented levels in 2025.
The global energy sector is turning to the United States as Russian gas supplies face sanctions
The ongoing war in Ukraine has led to a wave of sanctions on Russian energy in all its forms. The recent approval by the energy ministers to phase out Russian gas and LNG imports by 2028 has led the vast majority of nations to turn to the United States to compensate for the loss of gas and oil from Mother Russia. The global energy market is shifting, and the end of the conventional energy sector that the world has relied on for generations is not that far off; however, in eh meantime, gas will see its role increasing across the world.
