Energy Transfer announces expansion of Permian Basin natural gas pipeline
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Energy Transfer LP has announced it has reached a positive financial investment decision (FID) for the expansion of its Transwestern Pipeline to increase the supply of natural gas to markets throughout Arizona and New Mexico from Energy Transfer’s premier asset base in the prolific Permian Basin.
Transwestern’s Desert Southwest pipeline expansion will provide reliable economic supplies of natural gas to support the long-term energy needs for utilities and energy providers in the region driven by population growth, high-tech industry demand and data cent expansion.
The Desert Southwest pipeline expansion project consists of 516 miles of 42 in. pipeline and nine compressor stations in Arizona, New Mexico and Texas. The design capacity of the pipeline is 1.5 billion ft3/d). The strategic system expansion extends Transwestern’s natural gas pipeline network, enhancing system reliability and providing additional optionality serving rapidly growing demand in the Southwestern US region. The project is expected to be in-service by 4Q29 and builds on Transwestern Pipeline’s long history of serving the region since it started operations in 1960.
The project is expected to cost approximately US$5.3 billion including US$0.6 billion of Allowance for Funds Used During Construction (AFUDC), and is supported by significant long-term commitments from investment-grade customers. Energy Transfer will launch an open season later this quarter and expects the remaining capacity to be fully subscribed upon completion of the open season.
Depending on the final results of the open season, the project could be efficiently expanded to accommodate additional demand.
The project promotes American industry by prioritising US steel pipe manufacturers as well as the expectation to utilise up to 5000 local workers and union labour construction jobs during the construction period.
Image: Current asset overview.
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
World Pipelines’ July 2025 issue
The July 2025 issue of World Pipelines covers horizontal directional drilling, pipeline pigging, supply chain monitoring, weld management, cathodic protection, and pipeline projects in South America.
Energy Transfer has assets across all major US supply basins and operates an extensive natural gas pipeline network that connects to energy providers in most major markets, including nearly 200 natural gas-fired power plants nationwide. This broad supply reach and deep market access provide the partnership with unique benefits, enabling it to capitalise on opportunities to increase earnings and efficiently expand its industry-leading pipeline network.Read the article online at: https://www.worldpipelines.com/project-news/06082025/energy-transfer-announces-expansion-of-permian-basin-natural-gas-pipeline/
You might also like
The World Pipelines Podcast - What the science says: pipeline safety with PRCI
A conversation about the research, collaboration, and science behind safer, cleaner, and more efficient pipeline operations. Featuring Gary Choquette, Executive Director of Research at the Pipeline Research Council International (PRCI).
Tune in to the World Pipelines Podcast on your favourite podcast app today.
