Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Stock Market»Arizona utilities sign up for gas pipeline project, spurred by data center development
    Stock Market

    Arizona utilities sign up for gas pipeline project, spurred by data center development

    August 7, 20254 Mins Read


    This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.

    Arizona Public Service Co. and Salt River Project will buy capacity on Transwestern Pipeline’s just-announced Desert Southwest expansion project, which aims to deliver natural gas from the Permian Basin in Texas to Arizona, the utilities said Wednesday.

    APS, the project’s anchor customer, will use gas from the pipeline for gas-fired power plants that will support planned data centers in the utility’s service territory, said Ted Geisler, chairman, president and CEO of Pinnacle West Capital Corp., APS’ parent company, during a Wednesday earnings call.

    Two Fortis utilities — Tucson Electric Power and UniSource Energy Services — and the City of Mesa, Arizona, are finalizing negotiations with Transwestern, an Energy Transfer unit, according to the utilities.

    All existing interstate gas pipelines serving Arizona are fully subscribed, according to the utilities.

    Transwestern owns a 2,590-mile gas pipeline that can deliver 0.9 billion cubic feet a day from southwest Texas to Arizona. APS, SRP and TEP buy gas that is delivered on the pipeline.

    Transwestern plans to spend about $5.3 billion to expand its system by building 516 miles of 42-inch pipeline and adding compressor stations in Arizona, New Mexico and Texas, Energy Transfer said Wednesday. The project would add 1.5 Bcf/day of capacity to the Transwestern system, according to the company. Energy Transfer aims to complete its project by late 2029.

    Energy Transfer said it will launch an open season this quarter and expects the remaining capacity on the pipeline expansion to be fully subscribed. Depending on the results of the open season, the project could be expanded, the Dallas-based oil and gas infrastructure company said. Transwestern is considering more than doubling the pipeline’s capacity by using 46-inch pipe, Marshall McCrea, co-CEO of Energy Transfer, said Wednesday during an earnings conference call.

    APS expects to spend $7.3 billion over 25 years buying gas on Transwestern’s expansion project, Pinnacle West said in a filing with the U.S. Securities and Exchange Commission.

    The Phoenix-based utility plans to bring power plants online when the pipeline project begins operating, according to Geisler. APS’ contract with Transwestern is flexible so the utility can buy more gas if it needs it, he said.

    APS has close to 4.5 GW of committed, high load customer demand, mainly data centers and some manufacturing, in its interconnection queue, with an additional 20 GW of uncommitted, potential large load customers, Geisler said.

    The utility set a peak demand record of about 8.5 GW on July 9, up 300 MW from last year’s peak, according to Geisler.

    APS expects its electric sales will grow by 4% to 6% a year through 2027, mainly driven by the addition of large loads onto its system, according to Pinnacle West’s earnings presentation. The utility expects to invest about $2.7 billion in generation from 2025 through 2027.

    APS is securing roughly 2 GW of power supply through a request for proposals issued in November.

    In response to rapid load growth, APS revised its carbon emissions reduction goals on Wednesday. “Reliable service for our customers is our top priority, which has led us to update our clean energy goal from zero carbon [emissions] to carbon neutral by 2050,” Geisler said. “We’re also transitioning away from interim [emissions reduction] targets to better reflect our near-term focus of reliability and affordability for our customers.”

    Last year, gas-fired power plants produced 45% of Arizona’s in-state electricity, followed by nuclear power at 27%, solar at 13%, coal at 8%, hydroelectric power at 4% and wind at 2%, according to the U.S. Energy Information Administration.

    Meanwhile, Energy Transfer is seeing growing demand for gas from power plants and data centers, according to Tom Long, the company’s co-CEO.

    “We continue to see a significant level of activity from demand-pull customers to supply, store and transport natural gas for gas-fired power plants, data centers and industrial and onshore manufacturing,” Long said during the company’s earnings call.

    Earlier this year, Energy Transfer signed its first significant deal with a hyperscaler — a behind-the-meter data center in Texas, according to McCrea. Originally, the contract was for 80,000 MMBtu/d, but it was increased to 380,000 MMBtu/d and could go to 475,000 MMBtu/d, he said. 

    Energy Transfer has now signed three deals with data centers in Texas, and is close to two more, McCrea said.

    Recommended Reading



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Drone technology aids CIFT experts to capture mating behaviour of Humpback Dolphins

    Stock Market

    Stock Market: How to Invest Amid Impacts From Tariffs, Trump’s Tax Bill

    Stock Market

    Dividend stocks: Reliance Industries, Jio Financial Services, ICICI Bank, CCI, IndiGo, and others to trade ex-dividend this week – Market News

    Stock Market

    Is Annaly Capital Management Stock a Millionaire Maker?

    Stock Market

    Nigerian Stock Market Sheds N516bn After Bullish Rally

    Stock Market

    Dividend Stock Split By Twelve Companies On August 12: Check Full List

    Stock Market
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    Mali : Barrick Gold annonce la suspension de ses activités après une saisie des stocks d’or

    Investments

    Using your IRA to pay for Healthcare expenses in retirement

    Commodities

    Flemish agriculture accelerates implementation of robotic systems

    Editors Picks

    5 things you didn’t know you could buy with cryptocurrency

    April 17, 2025

    Montana state auditor warns of cryptocurrency scams

    May 19, 2025

    Starwood Property Trust Inc dépose une demande d’enregistrement mixte, montant non divulgué – Dépôt auprès de la SEC

    May 9, 2025

    How Twisted Metal Left a Scar – Literally

    August 2, 2025
    What's Hot

    3 Premier KRX Dividend Stocks With Up To 6.8% Yield

    October 17, 2024

    Charter Hall Retail REIT annonce un dividende semestriel de 0,124 AUD par action

    June 18, 2025

    L’intégrale de Tout pour investir du lundi 5 mai

    May 5, 2025
    Our Picks

    Gold Price Records Show Investors See It As the Ultimate Safe Haven

    April 22, 2025

    New Casino Cryptocurrency Attracts TRX & BNB Investors To Presale

    August 28, 2024

    deux résidents des Blés d’or décrochent une médaille

    June 10, 2025
    Weekly Top

    Brazil Turns Itself Into A Metal Gear Shrine On Wplace

    August 10, 2025

    one man’s struggle to hold onto family land in the American South

    August 10, 2025

    Regulatory, fintech innovators’ collaboration needed to help MSMEs thrive – Adeoti, Routelink CEO

    August 10, 2025
    Editor's Pick

    MONEY LAUNDERING CASES INVOLVING CRYPTOCURRENCY: New Resource by

    August 12, 2024

    10 Dividend Stocks to Double Up On Right Now – The Motley Fool

    July 15, 2025

    de possibles baisses de production dans le nucléaire dès lundi

    June 21, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.