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Energy Transfer (NYSE:ET) said Wednesday it reached a positive financial investment decision for the $5.3B expansion of its Transwestern pipeline to increase the supply of natural gas to markets throughout Arizona and New Mexico from Energy Transfer’s assets in the Permian Basin.
Transwestern’s Desert Southwest pipeline expansion project consists of 516 miles of 42-inch pipeline and nine compressor stations in Arizona, New Mexico and Texas, with a design capacity of 1.5B cf/day, extending Transwestern’s natural gas pipeline network; the project is expected to begin service by Q4 2029.
Energy Transfer (NYSE:ET) said it will launch an open season later this quarter and expects the remaining capacity to be fully subscribed; depending on the final results of the open season, the project could be expanded to accommodate additional demand.
Pinnacle West (PNW) subsidiary Arizona Public Service and other utilities announced commitment plans to lock in natural gas delivery from the expansion project.