1. Transwestern launched an expansion project for natural gas transportation. 2. The project aims to transport 1.5 billion cubic feet of gas daily. 3. Completion is projected for Q4 2029, pending regulatory approvals. 4. Sufficient binding commitments are secured to proceed with the project. 5. Expansion targets markets in Arizona and New Mexico from the Permian Basin.
The expansion aligns with increasing demand for natural gas, which could boost revenues, similar to past pipeline expansions that improved cash flows significantly.
The project will expand ET's infrastructure and market access, indicating significant growth potential.
Though the project has long-term prospects with completion aimed for 2029, its commitment now demonstrates market confidence and a secure future revenue stream.
Transwestern Pipeline Company, LLC (Transwestern), a subsidiary of Energy Transfer LP (NYSE: ET), today announced the launch of a binding open season for an expansion of its system in Texas, New Mexico and Arizona to transport supplies of natural gas in the Permian Basin to markets in the Desert Southwest. The open season begins at 12:00 p.m. CDT on September 26, 2025, and ends at 12:00 p.m. CDT on October 25, 2025.
The Desert Southwest expansion project is a combination of new large-diameter pipeline, compression and metering facilities capable of transporting a minimum of 1.5 billion cubic feet per day of natural gas from various receipt points in the Permian Basin area to existing and new delivery points in New Mexico and Arizona.
Transwestern has secured sufficient binding commitments to proceed with the project. The additional binding commitments submitted in connection with this open season will be included in determining the optimal size and design of the project. Pending necessary regulatory approvals, permits and other related authorizations, the project is expected to be completed in the fourth quarter of 2029.
Additional detailed information about the open season will be available on Transwestern's website. Interested parties may also contact any of the following Transwestern representatives with questions:
Steven Hearn (713) 989-2427
Brad Cherry (713) 989-2420
Matt Brill (713) 989-7942
dltwbusinessdevelopment@energytransfer.com
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 140,000 miles of pipeline and associated energy infrastructure. Energy Transfer's strategic network spans 44 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids ("NGL") and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and approximately 21% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 38% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at energytransfer.com.
Forward Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results, including risks associated with growth capital projects, are discussed in the Partnership's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our website at energytransfer.com.
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