(The Center Square) – Gov. Katie Hobbs announced her support for a pipeline that will bring more natural gas into Arizona.
The Democratic governor said a top priority of her administration is ensuring Arizona families and businesses have “reliable and affordable energy.”
“With existing pipelines fully subscribed, securing additional natural gas capacity is critical to supporting Arizona’s long-term prosperity,” she said. “The Desert Southwest Pipeline will significantly increase our state’s energy capacity and diversify our energy resources.”
As the state continues to grow, Arizona will need to increase its energy demand, Hobbs said.
She added that the Desert Southwest Pipeline project “ensures that during periods of high demand, we have the energy we need to meet it.”
Vicki Granado, vice president of public relations and corporate communication for Energy Transfer, said the company is pleased to have the governor’s support of its pipeline, which is in the planning stage.
Energy Transfer, one of America’s biggest pipeline companies, expects to begin construction in the second quarter of 2028 and complete it by the fourth quarter of 2029, Granado told The Center Square on Wednesday.
The 520-mile-long underground pipeline starts in Texas and goes through New Mexico and Arizona, according to the company’s website.
Granado said the pipeline will bring “much-needed natural gas supply into the state.”
With Arizona’s population and businesses continuing to grow, “the need to support natural gas power generation is going to continue to expand,” she said.
Nick Myers said that before he became chair of the Arizona Corporation Commission in 2026, the Arizona natural gas industry said the state’s pipelines were at capacity.
He added that Arizona’s pipelines have been this way for numerous years.
Arizona utilities companies will have enough gas until the pipeline is built, Myers told The Center Square on Wednesday.
To meet the state’s increasing demand, Arizona needed another natural gas source, he said.
Arizona has numerous renewable energy sources, but to expand them, the state needed more natural gas, Myers noted.
Natural gas plays a big role in Arizona’s economy, Myers said, calling it the “foundation of [Arizona’s] energy structure.” In 2024, natural gas-fired power plants provided 45% of Arizona’s electricity generation, according to the U.S. Energy Information Administration.
The Palo Verde Generating Station is the backbone of Arizona’s energy grid, while natural gas is “the tool that allows [Arizona] to expand and grow until the point where nuclear is a viable option,” Myers said.
Myers said most pipeline regulation takes place at the federal level, but the ACC also regulates railroad and pipeline safety in Arizona.
He added that the ACC attempts to ensure Arizona’s energy providers are “maintaining an appropriate balance of gas versus solar, wind and nuclear.”
Regarding economic benefits, Energy Transfer estimates the pipeline will create up to 5,000 construction jobs, with another 75 full-time positions to operate and maintain it, Granado said.
She noted these full-time jobs will be spread across New Mexico and Arizona.
With the new pipeline coming in, the ACC approved converting certain coal plants to natural gas plants, Myers said. Without the pipeline, Myers said, these coal plants would have been shut down in the “early to mid 2030s.”
According to Myers, keeping these plants open allows energy to remain on the state’s electrical grid and keeps “communities functioning.”
He estimated hundreds of Arizona jobs will be saved as these coal plants switch to natural gas.
