Macro tailwinds fuel midstream’s strong first half

Midstream companies posted gains in the first half of 2026 as supply disruptions in the Middle East reduced global inventories and higher demand for liquefied natural gas and power spurred export and pipeline expansions. The Alerian MLP Infrastructure Index rose 17.2% in the first quarter and added 0.9% in the second quarter. The Alerian Midstream Energy Select Index gained 23.4% in the first quarter and 0.8% in the second. Oil prices rose 76.6% in the first quarter and fell 31.5% in the second quarter.

Closure of the Strait of Hormuz removed about 20% of global LNG flows, mainly from Qatar, and overall supply losses exceeded 1.3 billion barrels. Buyers in Europe and Asia signed long-term contracts and U.S. exporters accelerated capacity additions.

Project activity accelerated. Venture Global sanctioned CP2 Phase 2. Cheniere Energy and its affiliates plan bolt-on projects, with a Sabine Pass expansion decision expected in early 2027 and a CCL expansion decision targeted for mid-to-late 2027. Canadian developers advanced several LNG proposals. On liquids, Energy Transfer is expanding the Nederland NGL terminal, Keyera and partners are building the Alberta Corridor Export rail terminal for LPG, and Enterprise Products Partners accelerated Phase 2 of the Neches River NGL marine terminal.

Power demand tied to data centers and utility grids increased pipeline and generation work. A consortium led by Blackstone committed $5.3 billion to acquire a 49% stake in five Williams power projects. Pembina approved a C$4.6 billion power facility to serve a Meta data center. A 9.2 GW power campus under construction in Ohio by AEP and SoftBank is expected to rely on natural gas supplied by Kinder Morgan. Some companies have raised long-term EBITDA guidance based on multi-year, fee-based contracts.

In the Permian Basin, rising gas-oil ratios increased associated natural gas volumes and pressured regional prices. The Waha hub traded in negative territory for months. Enterprise Products Partners forecasts Permian natural gas and NGL production to grow about 1.6 times faster than crude oil output. Kinder Morgan’s Gulf Coast Express Expansion started up and Waha moved back into positive territory. Energy Transfer’s Hugh Brinson pipeline and the Blackcomb joint venture are expected to start in the second half of 2026, and most planned takeaway capacity additions in 2026–2027 originate in Texas.

The crude futures curve for 2027 moved about $10 per barrel higher since the conflict began. Market participants expect higher futures to affect production planning for oil, natural gas and NGLs in 2027.

Investors will watch final investment decisions on export plants and power-adjacent projects and company updates during earnings season beginning in late July and early August, including potential revisions to full-year EBITDA guidance, dividend announcements and share-repurchase plans.