Arizona Announces $5.3 Billion Natural Gas Pipeline Project

Construction of a natural gas pipeline in Arizona

News Summary

Arizona has initiated a $5.3 billion natural gas pipeline project aimed at meeting the state’s growing energy demands. Developed by Energy Transfer LP, the pipeline will connect Arizona with natural gas supplies from the Permian Basin in West Texas. Spanning 516 miles, it will transport up to 1.5 billion cubic feet of natural gas daily. The project is essential for addressing a projected 60% increase in energy demand over the next 13 years and is expected to boost job creation while ensuring stable energy costs.

Arizona has announced a significant investment in its energy infrastructure with the introduction of a new natural gas pipeline project valued at approximately $5.3 billion. The pipeline, initiated by Energy Transfer LP and constructed by Transwestern Pipeline Company, is planned to connect Arizona to natural gas supplies from the Permian Basin in West Texas. It aims to address the growing energy demands of the region’s utilities, including Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), and UniSource Energy Services.

The proposed pipeline will measure 42 inches in diameter and span 516 miles, traversing Texas, New Mexico, and Arizona. It is designed to transport up to 1.5 billion cubic feet of natural gas each day, ensuring a reliable source of energy as the state prepares for increased electricity usage in the coming years.

As Arizona faces a projected increase of over 60% in energy demand within the next 13 years, the new pipeline is being viewed as a critical development to help utilities manage this expected growth. The construction is expected to be finished by 2029, and includes approximately $600 million allocated for Allowance for Funds Used During Construction (AFUDC).

Utility leaders have highlighted the importance of the project for maintaining a stable energy supply throughout peak demand periods, especially in the summer months characterized by high temperatures. The current interstate pipelines serving Arizona are reported to be fully subscribed, underlining the necessity for new infrastructure to support future energy demands.

A coalition of Arizona businesses, including various industry organizations such as the Arizona Cattle Feeders Association and the Arizona Restaurant Association, has voiced solid support for the project. This backing emphasizes the potential benefits the pipeline could provide in terms of keeping energy costs manageable and supporting job creation across the state.

The Arizona Chamber of Commerce has pointed out that the natural gas pipeline will enable the state to remain competitive with high-growth regions, showcasing its ability to attract commerce with affordable energy solutions. The involvement of the City of Mesa in this project further emphasizes Arizona’s ambitions to innovate not just in energy, but also in vital areas like water conservation.

Natural gas currently accounts for 45% of Arizona’s electricity generation, making it an essential component of the state’s energy grid. The pipeline is expected to play a significant role during peak energy periods, particularly as the state sees a rise in data center operations and other energy-intensive industries. APS has recognized the pipeline as crucial for meeting these expanding energy needs, while also evaluating options for new nuclear projects to diversify energy production amid fluctuating renewable energy outputs.

While the project caters to immediate energy demands, it has also prompted discussions regarding the environmental implications of increased reliance on fossil fuels. Stakeholders have raised concerns about the balance between securing necessary energy supplies and pursuing cleaner alternatives. As debates continue around energy reliability and sustainability, the Arizona utilities are committed to ensuring that the pipeline meets both current and future demands effectively.

In conclusion, the proposed natural gas pipeline represents a pivotal step for Arizona’s energy landscape, providing a robust solution to the anticipated growth in energy demand. By enhancing accessibility to low-cost natural gas and modernizing energy infrastructure, Arizona aims not only to fulfill immediate needs but also to pave the way for sustainable economic development in the years to come.

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STAFF HERE PHOENIX WRITER
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.

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