Arizona Consumers and Businesses Applaud New Natural Gas Pipeline Project

A new interstate natural gas pipeline project by Energy Transfer LP to be constructed, owned, and operated by Transwestern Pipeline Company is being applauded by consumers and chambers of commerce alike.

The Desert Southwest pipeline expansion project consists of 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 strategic system expansion extends Transwestern’s natural gas pipeline network, enhancing system reliability and providing additional optionality serving rapidly growing demand in the Southwestern U.S. region. The project is expected to be in-service by the fourth quarter of 2029 and builds on Transwestern Pipeline’s long history of serving the region since it started operations in 1960.

The project is expected to cost approximately $5.3 billion including $0.6 billion of Allowance for Funds Used During Construction (AFUDC), and is supported by significant long-term commitments from investment-grade customers. Energy Transfer will launch an open season later this quarter and expects 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 as well as the expectation to utilize up to 5,000 local workers and union labor construction jobs during the construction period.

“Reliable and affordable energy is essential to powering innovation across industry sectors, from advanced manufacturing to technology start-ups,” said Grace Appelbe, executive director of the Arizona Manufacturers Council. “We applaud the announcement of Transwestern’s new pipeline project that will ensure sustainable economic growth in Arizona for decades to come.”

“Access to natural gas supply is essential for our farmers and ranchers to power critical operations,” said Patrick Bray, executive vice president of Arizona Farm and Ranch Group. “This pipeline is a smart investment that will ensure continued success and competitiveness of Arizona’s agriculture industry, allowing us to produce the food that sustains our communities and contributes significantly to our economy.”

“Arizona’s long-term competitiveness will rely on robust infrastructure planning. This new pipeline project is vital for meeting Arizona’s growing energy needs, energy choice for consumers, and ensuring a reliable and affordable energy source for homeowners across Arizona,” said Jackson Moll, CEO of the Home Builders Association of Central Arizona.

“Energy reliability is a requirement for the health, safety, and productivity of our people and businesses of all sizes here in Tucson and across Southern Arizona,” said Joe Snell, president & CEO of the Chamber of Southern Arizona. “Transwestern’s new pipeline project will be a cornerstone of Arizona’s 21st century energy landscape, supporting both current and future need.”

“With this new pipeline, we’re building the infrastructure required to ensure a resilient Arizona—one where businesses can plan, expand, and thrive, confident that energy constraints won’t hold them back,” said Clark Princell, president & CEO of Valley Partnership.

“Natural gas is a key component of our state’s economic success,” said Julie Pastrick, president and CEO, Greater Flagstaff Chamber. “With existing pipeline capacity 100% committed, Transwestern’s proposed infrastructure project will provide Arizona with a critical new source of long-term supply and meet needs of rural Arizona.”

“Reliable infrastructure like this pipeline is key to driving commercial growth throughout Arizona. It supports the increase in demand and ensures developments in our state remain competitive in a growing economy,” said Cheryl Lombard, president and CEO of NAIOP Arizona.

“Arizona’s economic future depends on reliable, scalable energy infrastructure that keeps pace with our rapid growth,” said Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry. “This project is more than a pipeline—it’s a signal to job creators that Arizona is serious about staying competitive, attracting investment, and building a resilient energy future.”

This project is supported by organizations across the state and across industry sectors including the Arizona Cattle Feeders Association, Arizona Chamber of Commerce and Industry, Bullhead Area Chamber of Commerce, Coolidge Chamber of Commerce, and the
Fresh Produce Association of the Americas.