SpaceX (SPCX) Stock: Company Builds Its Own Gas Pipeline to Fuel Thousands of Starship Launches

TLDR

• SpaceX plans to build an 8-mile natural gas pipeline called “Starpipe” to its Starbase launch facility in Texas
• Construction starts next month, with the pipeline expected in service by January 26
• Starship uses roughly 630,000 gallons of liquid methane per launch, currently delivered by tanker trucks
• SpaceX has signed over 100 oil and gas leases in Texas since 2023 as part of broader fuel supply plans
• The pipeline’s capacity suggests fuel demand well beyond the 25 launches per year currently approved by the FAA

SpaceX (SPCX) is preparing to build an eight-mile natural gas pipeline to its Starbase launch complex in South Texas, according to county filings reviewed by Reuters.

Space Exploration Technologies Corp, SPCX

The pipeline, dubbed “Starpipe,” is expected to begin construction next month. A filing with the Texas Railroad Commission by SpaceX affiliate Lone Star Mineral Development indicates it should be in service by January 26.

Starship burns roughly 630,000 gallons of liquid methane per launch. Right now, that fuel arrives by hundreds of tanker trucks in a process that takes hours — not exactly compatible with Musk’s ambitions.

SpaceX has completed 12 Starship test launches since 2023. Musk has spoken openly about scaling to dozens, then hundreds, and eventually thousands of launches per year. Trucking in fuel simply doesn’t work at that pace.

Replacing Trucks With Pipes

The Starpipe project would originate near the Port of Brownsville, where SpaceX is negotiating a 50-year land lease. Engineering plans already filed with the U.S. Army Corps of Engineers show SpaceX wants to build a liquefaction facility at Starbase to convert the piped-in gas into liquid methane on-site.

SpaceX President Gwynne Shotwell touched on the broader plan when the company went public on June 12, telling CNBC that SpaceX intended to build pipelines, process its own propellant, and was looking into drilling its own natural gas.

That last part raised eyebrows. Extracting natural gas would be a new frontier for a company with no oil and gas experience.

A Bigger Supply Chain Play

Starpipe looks to be part of a longer-term supply chain strategy. SpaceX has signed over 100 paid-up oil and gas leases with Texas property owners since 2023, land records show.

The pipeline’s 16-inch diameter is also worth noting. Industry observers say it implies fuel capacity beyond what would be needed for the 25 launches per year currently approved by the FAA — a signal of where SpaceX thinks its launch rate is heading.

The project could potentially tap into Enbridge’s Valley Crossing Pipeline expansion, which would run close to Starpipe’s starting point. Enbridge did not respond to a request for comment.

SpaceX did not respond to Reuters’ request for comment either.

The pipeline is the latest example of SpaceX applying its vertically integrated approach beyond rockets. The company is already building or operating its own infrastructure across satellites, launch vehicles, and now energy supply.

SpaceX went public on June 12. SPCX is currently trading on the Nasdaq.

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