Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Monday, October 5
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Utilities»Arizona utilities sign up for gas pipeline project, spurred by data center development
    Utilities

    Arizona utilities sign up for gas pipeline project, spurred by data center development

    August 7, 20254 Mins Read


    This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.

    Arizona Public Service Co. and Salt River Project will buy capacity on Transwestern Pipeline’s just-announced Desert Southwest expansion project, which aims to deliver natural gas from the Permian Basin in Texas to Arizona, the utilities said Wednesday.

    APS, the project’s anchor customer, will use gas from the pipeline for gas-fired power plants that will support planned data centers in the utility’s service territory, said Ted Geisler, chairman, president and CEO of Pinnacle West Capital Corp., APS’ parent company, during a Wednesday earnings call.

    Two Fortis utilities — Tucson Electric Power and UniSource Energy Services — and the City of Mesa, Arizona, are finalizing negotiations with Transwestern, an Energy Transfer unit, according to the utilities.

    All existing interstate gas pipelines serving Arizona are fully subscribed, according to the utilities.

    Transwestern owns a 2,590-mile gas pipeline that can deliver 0.9 billion cubic feet a day from southwest Texas to Arizona. APS, SRP and TEP buy gas that is delivered on the pipeline.

    Transwestern plans to spend about $5.3 billion to expand its system by building 516 miles of 42-inch pipeline and adding compressor stations in Arizona, New Mexico and Texas, Energy Transfer said Wednesday. The project would add 1.5 Bcf/day of capacity to the Transwestern system, according to the company. Energy Transfer aims to complete its project by late 2029.

    Energy Transfer said it will launch an open season this quarter and expects the remaining capacity on the pipeline expansion to be fully subscribed. Depending on the results of the open season, the project could be expanded, the Dallas-based oil and gas infrastructure company said. Transwestern is considering more than doubling the pipeline’s capacity by using 46-inch pipe, Marshall McCrea, co-CEO of Energy Transfer, said Wednesday during an earnings conference call.

    APS expects to spend $7.3 billion over 25 years buying gas on Transwestern’s expansion project, Pinnacle West said in a filing with the U.S. Securities and Exchange Commission.

    The Phoenix-based utility plans to bring power plants online when the pipeline project begins operating, according to Geisler. APS’ contract with Transwestern is flexible so the utility can buy more gas if it needs it, he said.

    APS has close to 4.5 GW of committed, high load customer demand, mainly data centers and some manufacturing, in its interconnection queue, with an additional 20 GW of uncommitted, potential large load customers, Geisler said.

    The utility set a peak demand record of about 8.5 GW on July 9, up 300 MW from last year’s peak, according to Geisler.

    APS expects its electric sales will grow by 4% to 6% a year through 2027, mainly driven by the addition of large loads onto its system, according to Pinnacle West’s earnings presentation. The utility expects to invest about $2.7 billion in generation from 2025 through 2027.

    APS is securing roughly 2 GW of power supply through a request for proposals issued in November.

    In response to rapid load growth, APS revised its carbon emissions reduction goals on Wednesday. “Reliable service for our customers is our top priority, which has led us to update our clean energy goal from zero carbon [emissions] to carbon neutral by 2050,” Geisler said. “We’re also transitioning away from interim [emissions reduction] targets to better reflect our near-term focus of reliability and affordability for our customers.”

    Last year, gas-fired power plants produced 45% of Arizona’s in-state electricity, followed by nuclear power at 27%, solar at 13%, coal at 8%, hydroelectric power at 4% and wind at 2%, according to the U.S. Energy Information Administration.

    Meanwhile, Energy Transfer is seeing growing demand for gas from power plants and data centers, according to Tom Long, the company’s co-CEO.

    “We continue to see a significant level of activity from demand-pull customers to supply, store and transport natural gas for gas-fired power plants, data centers and industrial and onshore manufacturing,” Long said during the company’s earnings call.

    Earlier this year, Energy Transfer signed its first significant deal with a hyperscaler — a behind-the-meter data center in Texas, according to McCrea. Originally, the contract was for 80,000 MMBtu/d, but it was increased to 380,000 MMBtu/d and could go to 475,000 MMBtu/d, he said. 

    Energy Transfer has now signed three deals with data centers in Texas, and is close to two more, McCrea said.

    Recommended Reading



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleBitcoin Market Pundits Flag BTC Price Levels to Watch Next
    Next Article AIG’s conservative approach to US property aided by clear understanding of reinsurance cost: CEO

    Related Posts

    Utilities

    Utilities are public services – and should not be run as businesses | Utilities

    October 2, 2026
    Utilities

    Reducing VPP risk for utilities, participants and other ratepayers

    October 2, 2026
    Utilities

    Utilities stocks face worst quarter since pandemic amid data center concerns

    September 30, 2026
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Investing

    Berkshire Hathaway Without Buffett: Record Markets, Uncertain Answers

    April 29, 2026
    Stock Market

    Stock Market Live Updates 1st December 2025: Stock to buy today: Cemindia Projects (₹838.45) – BUY

    November 30, 2025
    Bitcoin

    Mark Cuban Says Trump’s Re-Election Won’t Impact Bitcoin’s Price, ‘Dogecoin Killer’ Shiba Inu’s Burn Rate Increases And More: This Week In Cryptocurrency

    July 21, 2024
    What's Hot

    Amazon’s £40B UK Investment Will Centre On Property

    June 24, 2025

    Dow, S&P 500, Nasdaq futures fall as uncertainty clouds markets

    October 16, 2025

    The One Financial Issue I Didn’t See Coming and Wish I Had

    August 10, 2024
    Most Popular

    FTSE 100 today: Stocks flat as U.S.-Iran Hormuz standoff drags on By Investing.com

    August 20, 2026

    Don’t Buy Strategy Stock When You Can Just Buy Bitcoin

    August 2, 2026

    Ex-Mt. Gox CEO Unveils New Bitcoin-Related Business

    August 23, 2024
    Editor's Picks

    Goldman Sachs’ ex-commodities star is now safe at PIMCO in New York

    September 23, 2026

    Asia stocks skid as China trims rates; Biden steps aside By Reuters

    July 22, 2024

    Dow futures down 280 points; Ferrari warns of tariff risk

    May 6, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2026 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.