09/26/2025 – 10:30 AM
DALLAS – Transwestern Pipeline Company, LLC (Transwestern), a subsidiary of Energy Transfer LP (NYSE: ET), today announced the commencement of a binding open season to solicit commitments for an expansion of its natural gas pipeline system across Texas, New Mexico, and Arizona. The expansion aims to bolster the transportation of natural gas supplies sourced from the prolific Permian Basin to burgeoning markets in the Desert Southwest. The open season will run from 12:00 p.m. CDT on September 26, 2025, to 12:00 p.m. CDT on October 25, 2025.
The Desert Southwest expansion project envisions the deployment of new large-diameter pipeline infrastructure, coupled with compression and metering facilities. This integrated system is designed to facilitate the transportation of at least 1.5 billion cubic feet per day (Bcf/d) of natural gas. The gas will be moved from various receipt points within the Permian Basin to existing and new delivery points located in New Mexico and Arizona. This capacity boost is strategically aligned with the anticipated increase in natural gas demand in the southwestern United States, driven by factors such as population growth, industrial expansion, and the rise of natural gas-fired power generation.
Transwestern has already secured sufficient binding commitments to move forward with the ambitious project. However, additional commitments received during this open season will be instrumental in refining the project’s optimal size and design, potentially unlocking further efficiencies and tailoring the system to precisely meet market demands. The company anticipates the project will be operational in the fourth quarter of 2029, contingent upon securing necessary regulatory approvals, permits, and other authorizations. This timeline reflects the complex logistical and regulatory environment surrounding large-scale pipeline projects, highlighting the need for meticulous planning and stakeholder engagement.
Industry analysts note that this expansion demonstrates Energy Transfer’s proactive approach to capitalizing on the continued growth in Permian Basin natural gas production. The Permian, a geological formation spanning parts of West Texas and Southeastern New Mexico, has become a cornerstone of U.S. energy production, with output consistently exceeding pipeline takeaway capacity. The Transwestern expansion aims to relieve this bottleneck, enabling producers to access markets further afield and potentially fetching higher prices for their gas.
However, the project also faces potential headwinds. Environmental groups may raise concerns about the environmental impact of pipeline construction and the potential for methane leaks, a potent greenhouse gas. Moreover, fluctuations in natural gas prices and shifts in regulatory policy could impact the project’s long-term economic viability. Energy Transfer will need to navigate these challenges effectively to ensure the Desert Southwest expansion delivers its intended benefits.
Energy Transfer LP (NYSE: ET) boasts a vast and diversified portfolio of energy assets across the United States, encompassing approximately 140,000 miles of pipeline and associated energy infrastructure. Its strategic network spans 44 states and reaches all major U.S. production basins. Energy Transfer’s core operations encompass natural gas midstream services, intrastate and interstate transportation and storage assets, crude oil, natural gas liquids (“NGL”) transportation and terminalling assets, and NGL fractionation. The company also owns Lake Charles LNG Company and holds significant interests in Sunoco LP (NYSE: SUN) and USA Compression Partners, LP (NYSE: USAC). For additional details, please visit energytransfer.com.
Forward Looking Statements
This news release contains forward-looking statements subject to risks, uncertainties, and factors difficult to predict, many beyond management’s control. Factors impacting future results, including risks tied to growth capital projects, are detailed in the Partnership’s Annual Report on Form 10-K and other SEC filings. The Partnership does not undertake to update or revise any forward-looking statement based on new data or events.
The information provided in this press release is available on our website at energytransfer.com.
Source: Energy Transfer LP
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