The rapid expansion of the US energy market has seen the nation become one of, if not the largest, contributors to the global energy output in 2026. Energy Transfer, a major energy transportation company in the US, has recently announced that it is moving forward with its larger-than-planned expansion of the Transwestern Desert Southwest pipeline, which the company states is needed to meet the anticipated increase in demand for natural gas in the US.
Energy Transfer: an increased transportation capacity company for the US
Energy Transfer has several essential pipelines in the United States and has become a major contributor to the US expansion of its energy industry. To meet the demand of the continuously expanding population in the US, Energy Transfer has announced the expansion of the Desert Southwest Pipeline in the prolific Permian Basin.
The rapid expansion of the US energy market has come at a pivotal point as demand for energy increases not only in the US but across the world as well. As noted in the company’s press release, the growth of the population and positive economic performance in Arizona and New Mexico requires efficient and stable energy supply.
The expansion plan has brought together some of the largest energy companies in the US that are set to benefit from the new expanded Transwestern Desert Southwest pipeline, a rarity in the modern-day environment.
“Natural gas generation is an important part of SRP’s all-of-the-above approach to ensuring reliability and affordability for our customers. The Transwestern Desert Southwest Pipeline expansion will help enable us to meet the region’s growing power needs and strengthen Arizona’s energy infrastructure.” – Bobby Olsen, SRP Associate General Manager and Chief Power System Executive
Due to the significant demand for growth in the region, the Desert Southwest pipeline expansion will play a vital role in meeting the expectations of the local populace as demand for natural gas grows across the world.
“We applaud the announcement of additional pipeline capacity along the Desert Southwest expansion project. This infrastructure is urgently needed to power the growth and business development taking place in rural Arizona.” – Patrick Ledger, CEO of Arizona G&T Cooperatives
A billion-dollar upgrade is no laughing matter for Energy Transfer
During a recent open season, it became abundantly clear that the region is in need of additional transportation capacity for essential energy resources. To meet demand, the Desert Southwest Pipeline mainline diameter has been increased from 42 inches to 48 inches, allowing for the transportation of 2.3 billion cubic feet per day of natural gas.
Energy Transfer is aiming to build on the significant progress made in advancing the Hugh Brinson Pipeline in the Permian, which the company states will become its most valuable asset in the Permian basin.
“Transwestern’s Desert Southwest pipeline expansion is an important critical source of natural gas. We look forward to Energy Transfer enhancing this project to enable greater resources across the region.” – Ted Geisler, APS President and CEO
Energy Transfer has noted that the expansion project will cost the company an estimated $5.6 billion, excluding Allowance for Funds Used During Construction (AFUDC). The result of this expansion will see the company’s total growth capital expenditures for this year expand dramatically to reach approximately $200 million.
New data reveals the continued expansion of the US oil and gas sector this year
According to several market experts and analysts, the US oil and gas pipeline capacity is set to expand dramatically in 2026, which has been a necessity to continue the current administration’s ambitions to transform the US into the undisputed king of the international oil and gas markets. Energy Transfer has stated it expects the pipeline to be in full service by the fourth quarter of 2029, at the very latest.
