As the world faces a new era of energy production, several large energy companies are fostering investments in astonishing expansion projects that could reshape the global energy market. Now, Transwestern Pipeline Company, a subsidiary of Energy Transfer, recently announced it will be opening a binding season for the company’s planned expansion of its Desert Southwest operations in the Permian basin. The United States energy market has seen tremendous growth over the past few months as companies prepare for an increase in demand due to the phasing out of Russian energy supplies to the global market.
The substantial sanctions on Russia have sent the global market into a tailspin
Following the latest round of sanctions on Russia due to its ongoing war in Ukraine, the vast majority of the nation’s energy companies have seen their share price plummet, as the world searches for a non-Russian energy supplier, or at least one with no ties to Moscow. Like a girlfriend stopping a friend from being hit on by a guy, in steps the United States.
The US energy sector, in particular the gas market, has seen a litany of nations and buyers turning to it as the end of Russian energy flows into the market is upon us. The result has been a substantial increase in demand from US-based energy operations, leading to some companies in America being forced to expand operations in preparation for the new surge in demand.
Transwestern is set to expand its natural gas transportation systems with a new open season
The company recently launched a new open season for the planned expansion of its gas and LNG infrastructure in the Permian basin. Transwestern established an open season to attract potential partners for the planned expansion. Luckily, the US gas sector is booming at the moment, and like a dog with a bone, it is not aiming to let go of the opportunity to revive the gas market.
Transwestern’s already impressive infrastructure is set to grow even more
Energy Transfer, the parent company of Transwestern, has a vast energy infrastructure with approximately 140,000 miles of pipeline. The company’s network spans 44 states with assets in all of the major U.S. production basins. But the Permian is the location for the planned expansion that the company recently revealed to the public.
The plan calls for the expansion of the company’s system in Texas, New Mexico, and Arizona to transport supplies of natural gas in the Permian Basin to markets in the Desert Southwest. The expansion comprises a new large-diameter pipeline, which will be capable of transporting a minimum of 1.5 billion cubic feet per day of natural gas.
Transwestern has noted that the planned expansion project is moving forward
The company has noted that it has secured sufficient binding commitments to move forward with the expansion plans, and expects the total costs of the project to come in at around $5.3 billion, including $600 million of Allowance for Funds Used During Construction. New pipelines have been sprouting up all over North America, as the world enters a phase of increased demand for natural gas from the region.
Despite the sanctions, Russia has its own pipeline project being developed
The news of Transwestern developing plans to extend its already vast gas infrastructure in the United States comes as Russia has recently outlined its plans to construct the Power of Siberia 2 pipeline, ensuring the continuation of Russian energy supply, at least in the region where it can still do business. The impact of the sanctions on Russia can not be understated, and has set the United States up to become the go-to source for gas and LNG buyers. The US has now become the top producer of gas supplies in the global energy market.
