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Energy Transfer’s Transwestern Desert Southwest expansion is a long-haul natural gas project designed to move Permian Basin supply west into structurally tightening markets in Arizona and New Mexico, where population growth, load growth and potential coal-to-gas conversions are increasing demand for firm, reliable gas delivery. The project was originally announced as a 516-mile, 42-inch build with nine compressor stations across Texas, New Mexico and Arizona, designed to transport 1.5 Bcf/d and targeted for in-service by Q4 2029
Following the project’s binding open season and incremental customer demand, Energy Transfer has now elected to upsize the mainline from 42 inches to 48 inches, increasing expected capacity to up to 2.3 Bcf/d (depending on final compression configuration). The upsized scope raises estimated cost to up to approximately $5.6 billion (excluding AFUDC) and lifts expected 2026 growth capex by approximately $200 million, while maintaining the Q4 2029 in-service target
Key Takeaway: Energy Transfer is scaling the Desert Southwest expansion into a larger, Permian-to-Southwest outlet to meet rising utility and power-sector demand with a targeted Q4 2029 start-up.
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