By Matthew Holloway |
A coalition of Arizona businesses from across the state released a statement expressing strong support for a newly announced project by Energy Transfer LP. The project will bring an interstate natural gas pipeline into the state from West Texas, constructed, owned, and operated by Transwestern Pipeline Company. It will power Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), Unisource Energy Services, and other utilities that supply energy to Arizona’s homes and businesses.
The new 42-inch pipeline, kept pressurized by nine compression stations, will span 516 miles across Texas, New Mexico, and Arizona. It will carry 1.5 billion cubic feet per day of natural gas. It is expected to come online in 2029.
AZBigMedia reported that the project is expected to cost approximately $5.3 billion, including about $600 million of Allowance for Funds Used During Construction (AFUDC)
“With this new natural gas pipeline, Arizona will be well positioned to have reliable baseload power to meet the growing demands of our economy,” said Arizona Corporation Commissioner Rachel Walden in a statement. “I’m pleased to see that the City of Mesa is participating in this project, serving as an example of Arizona’s ability to attract new commerce with affordable power while innovating in water conservation.”
In a post to X, Commissioner Nick Myers noted that this annoucement came alongside the recent accouncement that APS is rolling back its Biden-era zero-carbon goals. He said, “On the same day it was announced that APS is backing off their Green New Deal style policies, further proof that this commission has not been friendly to those policies, it was announced that Transwestern will be putting in another natural gas pipeline into Arizona. Energy dominance at its best!”
According to the Arizona Chamber of Commerce and Industry, “The project will help ensure that Arizona remains competitive with other high-growth states by providing the reliable, cost-effective energy necessary for economic development and job creation, particularly as energy demand is projected to soar.”
The Chamber added in a press release, “Natural gas is a cornerstone of Arizona’s energy system, generating 45% of the state’s electricity. It plays a critical role in supporting Arizona’s modern electricity grid, helping utilities meet peak demand during extreme summer weather and enabling the deployment of renewable energy resources like solar and wind year-round. Additionally, more than 1.4 million residential, commercial, and industrial customers count on the natural gas distribution system for their home comfort and business needs, including in sectors like semiconductors, EV batteries, and other advanced manufacturing.”
APS director of Resource Integration and Fuels Jill Freret told KJZZ, “This expansion for APS and for some of our peer utilities really allows us to bring in more natural gas to fuel existing facilities with growing demand and position us to have additional gas on our system out into the future.” Freret observed that the energy demand of APS is expected to increase by over 60% in the next 13 years.
The benefits of the project are not limited to the energy industry, however. Patrick Bray, Executive Vice President of Arizona Farm and Ranch Group, explained, “Access to natural gas supply is essential for our farmers and ranchers to power critical operations. This pipeline is a smart investment that will ensure the 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.”
In addition to dozens of Chambers of Commerce across the state, from Flagstaff to Sahuarita, industry organizations including the Arizona Cattle Feeders Association, Arizona Lodging & Tourism Association, Arizona Manufacturers Council, Arizona Multi-housing Association, Arizona Restaurant Association, Arizona Rock Product Association, Arizona Small Business Association, Arizona Trucking Association, and the United Dairymen of Arizona, all expressed support for the pipeline.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
