Energy Transfer, a major pipeline firm that threatened to terminate natural gas service to five Vistra Corp. gas-fired power plants in Texas next week as part of a $ 21.3 million penalty payment standoff, has relaxed its ultimatum, though the underlying dispute continues.

In a letter filed with the Texas Railroad Commission late on Jan. 20, the midstream and intrastate transportation and storage giant said it reached an agreement with Vistra subsidiaries Luminant Energy Co. and Dynegy Marketing to “temporarily maintain natural gas service” through March 31, 2022, not Jan. 23, as it had threatened. 

However, Energy Transfer subsidiaries Energy Transfer Fuel (ETF) and Oasis Pipeline will continue to sell natural gas to the Vistra subsidiaries under terms and conditions that have been place since Dec. 1, 2021. It will mean that Luminant will keep buying natural gas for power generation at daily spot prices.

Luminant in a complaint filed with the Railroad Commission—Texas’s oil and gas regulator—on Jan.…

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