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SpaceX (SPCX) reportedly plans to begin construction of an eight-mile natural gas pipeline called “Starpipe” to its Texas launch facilities next month. The project is aimed at supporting higher launch rates for its next-generation Starship rocket.
The pipeline plan signals Elon Musk’s intent to accelerate Starship’s development and lay the groundwork for a faster flight rate, according to a Reuters report.
SPCX shares ended the Thursday session down 1.01% at $153, remaining slightly above their Nasdaq debut price of $150.
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Starpipe will terminate at Starbase, SpaceX’s company town in Texas, and is expected to enter service by January 26, according to a document filed with the Texas Railroad Commission by SpaceX affiliate Lone Star Mineral Development and reviewed by Reuters.
The 40-story Starship rocket is central to SpaceX’s efforts to expand its Starlink broadband network, deploy orbital AI data center satellites, and eventually transport astronauts to the moon and Mars.
Designed to be fully reusable, Starship requires around 630,000 gallons of liquid methane for each launch. The fuel is currently delivered by hundreds of tanker trucks in a process that can take hours, a setup that is not compatible with Musk’s plans for a much higher launch rate.
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Starship has completed 12 test launches since 2023. Musk has said he ultimately wants to increase that pace to dozens, hundreds and eventually thousands of launches annually.
Starpipe would begin on an 83-acre parcel at the Port of Brownsville that SpaceX is negotiating to lease for 50 years, according to Reuters. Engineering plans filed with the U.S. Army Corps of Engineers indicate that SpaceX also wants to build a liquefaction facility at Starbase to convert natural gas delivered through the pipeline into liquid methane.
The move into gas infrastructure reflects SpaceX’s long-standing strategy of controlling as much of its supply chain as possible.
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On Stocktwits, retail sentiment for SPCX was ‘bearish,’ unchanged in the last 24 hours, while message volume was ‘high.’ Over the past 30 days, message volume around the stock has surged nearly 1,590%.
SPCX stock is down 2% since it listed.
Also See: MSFT Stock Slides 4.5% — Microsoft Price Target Revision By Stifel And Xbox Pricing Changes In Focus
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