Energy

One of the largest midstream energy firms in the world will build a 516-mile natural gas pipeline from West Texas to Arizona (POLITICO Pro’s ENERGYWIRE, subscription).

What’s going on: The planned Desert Southwest line by Energy Transfer —a company best known for its development of the Dakota Access pipeline in the Midwest—”is slated to run along existing pipeline routes, the company said last week, and the project is expected to be completed by the end of 2029.”

• The new line is necessary to serve “population growth, high-tech industry demand and data center expansion,” Energy Transfer said in a statement.
• The Houston, Texas-based company “has a network of 140,000 miles of pipelines and related infrastructure across 44 states” and is developing a liquefied natural gas export terminal in Louisiana.

Significant interest: Arizona utilities have already announced commitments to get gas from the pipeline, which is currently slated to be three-and-a-half feet in diameter but could increase to 4 feet given the significant interest in the endeavor.

• That increase would double the expected capacity of the pipeline.

Prioritizing manufacturers in the U.S.: The new pipeline will create 5,000 new jobs, and Energy Transfer said it would be “prioritizing U.S. steel pipe manufacturers” for the project.

• In addition, the gas from this project will help supply energy to key manufacturing and AI investments being made across the Phoenix metropolitan region—including in semiconductors, automobiles, aerospace, healthcare and biosciences.

The word from Arizona: “Arizona’s economy is growing and becoming more diversified than ever, including a significant increase in advanced manufacturing,” said Arizona Public Service President and CEO Ted Geisler.

• “This new pipeline represents a long-term commitment to reliability, resilience and affordability for customers and supports the unprecedented economic momentum that makes Arizona a great place to do business.”

The NAM says: “Desert Southwest is a prime example of what can be achieved when we embrace an all-of-the-above energy strategy—one that includes harnessing our abundant natural resources,” NAM Vice President of Domestic Policy Chris Phalen said.

• “The pipeline will not only create jobs and business for U.S. manufacturers, it will also help reinforce the regional electrical grid at a critical time of explosive growth so more Americans can enjoy reliable baseload power.”