With the new year bringing a surge in demand for natural gas, the United States has become the go-to destination for any gas buyers on the international stage. Energy Transfer, one of the largest energy companies in the US market, has announced that it will upsize the Transwestern Desert Southwest pipeline to meet an expected increase in demand across the region in the United States.
The US gas market has been growing at an astonishing rate over the past few months
Since Donald Trump took office for his second term, he has dramatically increased oil and gas production across the American market, which, to be fair, was one of his main campaign promises. The region in and around the Permian basin has seen tremendous growth, resulting in a wave of new midstream gas production and demand.
Energy Transfer is one of the largest energy companies in the United States with assets that beggar belief. The company has over 140,000 miles of pipelines and associated infrastructure in the US market, and has now opted to expand the planned Transwestern Desert Southwest pipeline to handle larger volumes of natural gas.
Steady population and economic growth in the region have influenced the company’s decision
New Mexico and Arizona have experienced notable population and economic growth over the past few years, which has forced Energy Transfer to contemplate moving capital investments from older projects to upsize the diameter of the Transwestern Desert Southwest pipeline.
The company states that the pipeline diameter will be increased from 42 inches to 48 inches to meet the expected increase in demand for natural gas across New Mexico and Arizona. Depending on the final compression configuration, the upsize will increase the project’s capacity to around 2.3 billion cubic feet per day.
“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’s total growth capital expenditures for 2026 are expected to increase
As the US market expands rapidly, Energy Transfer is aiming to take full advantage and expand its standing in the US market over the coming years. The United States already has the status of the largest gas producer in the world by capacity, and will boost the capacity output further with the upsizing of the Transwestern Desert Southwest pipeline.
“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
The company has stated that the expansion of the pipeline will cost approximately $5.6 billion, increasing Energy Transfer’s capital expenditure by $200 million in 2026. As other pipelines in the Permian basin are set to be constructed this year, the US market is set to continue to grow rapidly in 2026.
“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
The Permian Basin remains the backbone of the US gas market
The decision to expand the Transwestern Desert Pipeline exemplifies the role that the Permian Basin plays in the United States’ dominance of the global gas sector. Several huge energy companies in the region have outlined plans to construct new pipelines to meet increased demand for natural gas over the coming years. With the larger pipeline in the Permian, Energy Transfer intends to lead the US market into a new era this year.
