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Permian Basin Oil and Gas Magazine

PBOG is the Official Publication of the Permian Basin Petroleum Association and is published monthly by Zachry Publications, LP.

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Increased customer demand produces Desert Southwest expansion from Permian

December 30, 2025 by PBOG

Dallas-based Energy Transfer said recently it will increase transportation capacity of Transwestern Pipeline’s Desert Southwest expansion project from Permian Basin because of additional customer demand.  The announcement said, “The continued population growth and positive economic momentum throughout Arizona and New Mexico will require efficient, reliable energy sources.”

The project’s mainline pipeline diameter will be upsized to 48 inches from 42 inches to increase capacity to up to 2.3 billion cubic feet per day.  Project cost is now expected to be $5.6 billion, including an increase of $200 million in 2026 budget.  Energy Transfer said the project is expected to be in-service by fourth quarter of 2029.

Patrick Ledger, CEO of Arizona G&T Cooperatives, said Dec. 18, “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.”

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