Energy Transfer announced that it is cutting spending this year on growth projects by $200 million. The company added that this came in line with a decline of the gas pipelines volumes due to the reduction of crude production and lower demand for LNG exports, according to S&P Global Platts.
In addition, the second quarter financial results of the company showed the impact of the coronavirus pandemic on North American energy market. However, the company is expecting slower activity increase than previously in the upcoming months.
The amount of natural gas transported through Energy Transfer’s interstates pipelines dropped 0.7 barrels cubic feet per day (bcf/d). The company’s growth capital spending cuts will lead it to invest $3.4 million during 2020. This spending is expected to decline to $1.3 in 2021 and to reach $500 million to $700 million per year in 2022 and 2023.