News Summary
Arizona is set to enhance its energy infrastructure with the launch of a $5.3 billion interstate natural gas pipeline by Transwestern Pipeline Company. This project aims to increase the state’s natural gas capacity, supporting over 1.4 million customers and crucial industries like semiconductors and electric vehicle batteries. The pipeline will transport natural gas from West Texas and is expected to be completed by late 2029. With significant backing from Arizona’s business community, this development is seen as vital for the state’s economic stability and future energy demands.
Arizona has announced a significant development in its energy infrastructure with the introduction of a new interstate natural gas pipeline by Transwestern Pipeline Company. This $5.3 billion project is designed to increase the state’s natural gas capacity, thereby securing Arizona’s energy future amidst rising demand from both residents and businesses.
The pipeline will transport natural gas from the Permian Basin in West Texas directly to Arizona, enhancing the supply for state utilities such as Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP). As a result, these utilities will be better equipped to meet the growing energy needs of over 1.4 million residential, commercial, and industrial customers across the state.
Arizona currently relies on natural gas for approximately 45% of its electricity generation, making it a crucial energy source, especially during the hot summer months. The new pipeline is anticipated to play an essential role in supporting various sectors, including semiconductors, electric vehicle (EV) batteries, and advanced manufacturing. These industries require reliable and scalable energy infrastructure to facilitate growth and innovation.
A coalition of Arizona’s business community has come together to voice support for the project, emphasizing its importance for economic stability and expansion. Various sectors, including agriculture, tourism, manufacturing, and construction, along with several chambers of commerce, have shown united backing. Their advocacy highlights the need for improved natural gas infrastructure, which they believe is vital for the state’s long-term economic health.
In particular, the project includes the construction of 516 miles of 42-inch pipeline and additional compressor stations spanning across Arizona, New Mexico, and Texas. Transwestern plans to expand its pipeline capacity, adding 1.5 billion cubic feet per day (Bcf/day) to its existing network, which currently encompasses 2,590 miles of pipeline that delivers approximately 0.9 Bcf/day from southwest Texas to Arizona.
Energy Transfer, the parent company of Transwestern, aims to complete this pipeline expansion by late 2029. APS has already announced plans to invest $7.3 billion over the next 25 years to purchase gas from the new pipeline, as they anticipate electric sales will grow by 4% to 6% each year through 2027 in response to an increase in large load customer demand, primarily from data centers and manufacturing facilities.
According to the U.S. Energy Information Administration, natural gas-fired power plants accounted for 45% of Arizona’s electricity in the previous year. However, existing interstate gas pipelines serving Arizona are currently fully subscribed, underscoring the urgent need for the new capacity that this project promises to deliver.
Despite the project being in its planning stages, stakeholders have already expressed optimism about its potential impact. The coalition had previously urged the Arizona Corporation Commission to support expanded natural gas infrastructure and has welcomed the announcement from Transwestern with enthusiasm. The support from a diverse array of stakeholders underlines the critical nature of this pipeline in addressing both current energy demands and future needs.
With reliability becoming a central concern as Arizona continues to grow, the development of the Transwestern pipeline represents a proactive step in ensuring that the state can meet its energy requirements and sustain its economic growth. This venture is expected to provide rural Arizona with a critical long-term natural gas supply, marking a major advancement for the region’s energy landscape.
Deeper Dive: News & Info About This Topic
- AZCentral
- Wikipedia: Natural Gas
- Utility Dive
- Google Search: Arizona natural gas pipeline
- Bloomberg
- Google News: Arizona pipelines
- Chamber Business News
- Encyclopedia Britannica: Natural Gas Infrastructure
- Daily Energy Insider
- Google Scholar: Arizona energy infrastructure
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
