President Donald Trump’s pro-energy policies were meant to speed the construction of the United States’ next generation of energy infrastructure, but many oil and gas pipeline operators would still rather buy than build their way to expansion due to a host of factors impeding large projects.
Trump declared an energy emergency on his first day in office and has issued directives to support exports, reform permitting and roll back environmental standards. Since his November election, a number of large-scale projects have been greenlit, including a liquefied natural gas terminal and a handful of pipelines.
But higher costs from a global trade war sparked by U.S. tariffs, labor shortages, low oil prices, and the risk of legal snags mean many companies are generally reluctant to commit to bold new construction.
Instead, operators see mergers and acquisitions as a more efficient way to grow. In the first quarter of this year, 15 U.S. midstream deals were struck, the highest quarterly number since the final three months of 2021, according to energy tech company Enverus.
«We have spent a lot of time thinking about the buy versus build question and, at this time, we’re seeing more opportunities to buy assets,» said Angelo Acconcia, a partner at ArcLight Capital Partners, which invests in energy infrastructure.
Acconcia said factors including tariffs and high demand for supplies and labor made it challenging to calculate the economics of building a project.
One of the most prevalent trends in dealmaking so far in 2025 has been pipeline companies buying back stakes in joint ventures, previously sold to help fund the initial development costs of prior-year builds.
Targa Resources (TRGP.N), opens new tab said in February it would acquire preferred equity in its Targa Badlands pipeline system from Blackstone (BX.N), opens new tab for $1.8 billion, while MPLX (MPLX.N), opens new tab said in the same month it would buy the 55% interest in the BANGL natural gas pipeline previously owned by WhiteWater Midstream and Diamondback Energy (FANG.O), opens new tab for $715 million.
Private equity owners of energy infrastructure are keen sellers, having spent recent years developing systems that are now online.