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Natural gas

Energy Transfer LP Announces Expansion of Transwestern Pipeline

Strategic Insights

— 2 min read

Energy Transfer LP has reached a positive financial investment decision for the expansion of its Transwestern Pipeline, a move that will increase the supply of natural gas to markets throughout Arizona and New Mexico. The expansion project, which will add 516 miles of 42-inch pipeline and nine compressor stations, is expected to provide reliable economic supplies of natural gas to support the long-term energy needs of utilities and energy providers in the region. The project will enhance system reliability and provide additional optionality serving rapidly growing demand in the Southwestern U.S. region.

Key Takeaways:

  • The Transwestern Pipeline expansion project will add 516 miles of 42-inch pipeline and nine compressor stations in Arizona, New Mexico, and Texas.
  • The design capacity of the pipeline is 1.5 billion cubic feet per day (Bcf/d).
  • The project is expected to cost approximately $5.3 billion, including $0.6 billion of Allowance for Funds Used During Construction (AFUDC).
  • Energy Transfer will launch an open season later this quarter, expecting 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 prioritizing U.S. steel pipe manufacturers and is expected to utilize up to 5,000 local workers and union labor construction jobs during the construction period.
  • Energy Transfer's Transwestern Pipeline has been serving the region since it started operations in 1960.
  • The project builds on Transwestern Pipeline's long history of serving the region and enhances system reliability and provides additional optionality.
  • Energy Transfer has assets across all major U.S. 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.

Statistics:

  • 516 miles of pipeline will be added to the Transwestern Pipeline through the expansion project.
  • 9 compressor stations will be added to the Transwestern Pipeline through the expansion project.
  • The design capacity of the pipeline is 1.5 billion cubic feet per day (Bcf/d).
  • The project is expected to cost approximately $5.3 billion.
  • $0.6 billion of Allowance for Funds Used During Construction (AFUDC) will be incurred.
  • 5,000 local workers and union labor construction jobs are expected to be created during the construction period.
  • Energy Transfer has nearly 200 natural gas-fired power plants connected to its pipeline network nationwide.
  • Transwestern Pipeline has been serving the region since it started operations in 1960.

Sources:

  • "Energy Transfer LP (NYSE: ET) today announced it has reached a positive financial investment decision (FID) for the expansion of its Transwestern Pipeline..." (Source: Energy Transfer LP)
  • "The Desert Southwest pipeline expansion project consists of 516 miles of 42-inch pipeline and nine compressor stations in Arizona, New Mexico and Texas..." (Source: Energy Transfer LP)
  • "The project is expected to be in-service by the fourth quarter of 2029..." (Source: Energy Transfer LP)
  • "The project promotes American industry by prioritizing U.S. steel pipe manufacturers..." (Source: Energy Transfer LP)
  • "Energy Transfer has assets across all major U.S. supply basins and operates an extensive natural gas pipeline network..." (Source: Energy Transfer LP)

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