The United States has become the backbone of the international gas industry as the nation produces more natural gas than any other country on the planet. For decades, the substantial basins in the US have provided US energy companies with the means to develop astonishing levels of output capacity from fields such as the prolific Permian and Delaware basins. Energy Transfer, a mainstay of the US energy market, has announced its plans to expand the Transwestern Pipeline to reach new demand in the US Southwest for natural gas.
Energy Transfer approves the planned expansion of its gas pipeline in the US
The firm has been operating in the prolific Permian basin since 1960, and following decades of operations, now boasts one of the most substantial energy infrastructure portfolios in the US. Energy Transfer has over 140,000 miles of pipeline and associated energy infrastructure in an energy network that spans across 44 US states.
Now, the company has announced the planned expansion of the Desert Southwest Pipeline as the gas market in the United States is set to grow to reach new heights in the years to come. The plan is to increase gas output for several US markets, such as Arizona and New Mexico. The expansion will support the growing demand for natural gas driven by population growth, high-tech industry demand, and data center expansion.
The reliability of the Energy Transfer supply line to US markets is set to get even more sustainable
The expansion project calls for 516 miles of 42-inch pipeline to be built alongside the construction of nine compressor stations in Arizona, New Mexico, and Texas. Energy Transfer has stated that it expects the design capacity of the pipeline to be 1.5 billion cubic feet per day, paving the way for the consistent growth of the US gas sector.
The firm’s long history of serving the US gas demand has led to a much-needed expansion of its infrastructure
The fact that the company has been serving its long-time customers with essential gas since 1960 means that in that time, Energy Transfer has developed an astonishing pipeline infrastructure that not only supplies several US states, but also proves the consistent reliability of the firm’s ability to meet growing demand throughout the years.
Notably, the expansion of the project is expected to be completed in 2029 and is expected to cost anywhere north of $5.3 billion. Additional funding for the project was provided by Allowance for Funds Used During Construction (AFUDC). The project also aligns perfectly with the directive issued by President Donald Trump, as it will rely on the US steel manufacturing and will utilize up to 5,000 local workers and union labor construction jobs during the construction period.
The Permian has long been serving up essential gas and oil reserves for the US market, and has recently been boosted by the news that Targa Resources plans to build a new 500-mile ‘Speedway’ pipeline. Despite global attention shifting to petrochemical and renewable energy production, the US gas market has never been stronger.
The Permian basin will continue to serve the US energy market, playing a vital role in the years to come
Energy Transfer’s announcement of the planned expansion of its pipeline infrastructure comes as several new projects in the Permian are set to boost the US energy sector in the years to come. A prime example of the importance that the Permian plays in the US market is the news that Brazos Midstream has commissioned the $185 million Sundance II gas-processing facility. This consistent growth is a representation of the sentiment the US has towards the conventional gas and oil sector, which it plans to increase capacity for in the next few years and beyond.
