Energy Transfer LP announced a positive financial investment decision (FID) for the expansion of its Transwestern Pipeline, known as the Desert Southwest pipeline expansion. This project aims to increase the supply of natural gas to markets across Arizona and New Mexico from the Permian Basin.
The Desert Southwest pipeline expansion project includes 516 miles of 42-inch pipeline and nine compressor stations across Arizona, New Mexico, and Texas, with a design capacity of 1.5 billion cubic feet per day (Bcf/d). This expansion will enhance system reliability and provide additional optionality for rapidly growing demand in the Southwestern U.S. region.
The project is expected to be in-service by the fourth quarter of 2029 and carries an estimated cost of approximately $5.3 billion, including $0.6 billion of Allowance for Funds Used During Construction (AFUDC). It is supported by significant long-term commitments from investment-grade customers, underscoring its strategic importance for Energy Transfer's growth.
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