Arizona Corporation Commission Hosts Workshop on Natural Gas Infrastructure and Storage

Strategic Insights -

The Arizona Corporation Commission held its first workshop on natural gas infrastructure and storage on August 26, 2025, to discuss the costs and benefits of expanding natural gas pipelines and storage in Arizona. The workshop brought together over a dozen agencies, including the American Gas Association, Federal Energy Regulatory Commission, and Arizona electric and natural gas utilities, to explore the importance of natural gas in ensuring Arizona's energy reliability.

Key Takeaways:

  • The workshop was hosted by Vice Chair Nick Myers, who emphasized the critical role of natural gas in securing Arizona's long-term energy reliability.
  • Representatives from the Trump Administration expressed their support for Arizona's efforts to expand natural gas infrastructure, citing the need for pipelines, storage, and investment certainty.
  • Currently, there are 49 applications for gas infrastructure and storage projects pending with the Federal Energy Regulatory Commission (FERC).
  • The Desert Southwest Expansion Pipeline Project, a $5.3 billion initiative, aims to expand the Transwestern Pipeline system by adding 516 miles of new pipeline and nine compressor stations.
  • Natural gas provided about 45% of Arizona's electricity needs in 2024, according to the Energy Information Administration.
  • The director for resource planning with APS, Mike Eugenis, emphasized the importance of dispatchable and flexible natural gas in providing power during periods of high demand, such as during intense heat.
  • The Arizona Corporation Commission emphasized the need for an "all of the above approach" to energy generation, combining natural gas with coal, nuclear, and renewables to maintain a reliable energy grid.

Statistics:

  • Natural gas provided 45% of Arizona's electricity needs in 2024 (Energy Information Administration).
  • There are 49 applications for gas infrastructure and storage projects pending with FERC.
  • The Desert Southwest Expansion Pipeline Project aims to expand the Transwestern Pipeline system by adding 516 miles of new pipeline and nine compressor stations.
  • The capacity of the current pipelines is 100% subscribed, requiring additional infrastructure to meet growing demand.
  • APS matches gas generation to solar output to address variability during the day.

Sources:

  • Arizona Corporation Commission
  • Nicole Garcia, "Workshop Discusses Costs and Benefits of Expanding Natural Gas Pipelines and Storage in Arizona" (August 26, 2025)
  • Federal Energy Regulatory Commission (FERC)
  • American Gas Association (AGA)
  • Energy Information Administration (EIA)
  • APS (Arizona Public Service Company)