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AZ Utilities Back $5.3B Pipeline Project to Bolster Strained Electricity Grid

SOUTHWESTERN UNITED STATES, AUG 6 – The $5.3 billion project will add 516 miles of pipeline and nine compressor stations, boosting capacity by 1.5 billion cubic feet per day to meet rising energy demand in the Southwest.

  • On Aug. 6, Energy Transfer LP announced a $5.3 billion FID for its Transwestern Pipeline expansion to carry natural gas from the Permian Basin to Arizona and New Mexico.
  • Amid surging demand from data centers and population growth, the expansion aims to bolster natural gas supply to Arizona and New Mexico markets, as existing pipelines are fully committed.
  • Featuring 516 miles of 42-inch pipeline and nine compressor stations across Texas, New Mexico and Arizona, the project expects to add 1.5 billion cubic feet per day of capacity.
  • Immediately following approval, the project expects to generate up to 5,000 construction jobs while APS and SRP have already committed to capacity.
  • By the fourth quarter of 2029, the project is set to be operational, with potential to expand capacity further based on open season and improve system reliability and optional supply options.
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Hart Energy broke the news in on Wednesday, August 6, 2025.
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