Arizona Public Service Co. And Salt River Project will buy capacity for the Southwest Southwest of Southwest of Southwest’s expansion project, which aims to deliver the natural gas of the Permian basin in Texas in Arizona, Public services said Wednesday.
APS, the project anchor client, will use the Gas de la Canalization for the gas power plants that will support the data centers provided for in the territory of the utility service, Ted geislerPresident, President and CEO of Pinnacle West Capital Corp., APS parent company, during a Wednesday benefit call.
Two Utilities of Fortis (Tucson Electric Power and Unisource Energy Services) and the city of Mesa, Arizona, end negotiations with Transwestern, a unit of energy transfer, according to the utilities.
According to public services, all existing interstate pipes that serve Arizona are completely subscribed.
Transwestern has a 2,590 miles of a pipeline that can deliver 0.9 billion cubic feet a day from the southwest of Texas to Arizona. APS, SRP and TEP buy gas that is delivered to the canalization.
Transwestern plans to spend about $ 5.3 billion to expand its system by building 516 42 inches of a 42 -inch pipeline and adding compressor stations to Arizona, New Mexico and Texas, Energy transfer said Wednesday. According to the company, the project would add 1.5 BCF/Day of capacity to the Transwestern system. The transfer of energy aims to complete its project by the end of 2029.
Energy Transfer said it will launch an open season this quarter and hopes that the remaining capacity of the expansion of the pipeline will be fully subscribed. According to the results of the open season, the project could be expanded, said the Dallas -based oil and gas infrastructure company. Transwestern takes into account more than duplicating pipeline’s capacity using the 46 -inch pipe, Marshall MCCREAHe said on Wednesday, co-director general of energy transfer during a results conference.
APS plans to spend $ 7.3 billion for more than 25 years to buy gas at the Transwestern Expansion project, said Pinnacle West a file With the United States Values and Values Commission.
Phoenix -based utility plans to bring online electric power plants when the pipe project begins to function, according to Geisler. The APS contract with Transwestern is flexible, so the utility can buy more gas if you need it, he said.
The APS has about 4.5 GW of demand and high load customers, mainly data centers and some manufacture, in its interconnection queue, with additional 20 GW of highly committed potential customers, said Geisler.
The utility set a maximum demand record of about 8.5 GW on July 9, up to 300 MW from last year’s peak, according to Geisler.
APS hopes that its electric sales will grow from 4% to 6% a year until 2027, mainly driven by the addition of large loads to its system, according to Pinnacle West’s Presentation of earnings. The utility plans to invest about $ 2.7 billion in generation from 2025 to 2027.
APS is ensuring approximately 2 GW of feeding through a Request for proposals Issued in November.
In response to a rapid burden growth, APS on Wednesday reviewed its carbon emissions reduction goals. “The reliable service for our customers is our highest priority, which has led us to update our clean energy goal from zero carbon [emissions] To Carbon Neutral by 2050, “said Geisler.” We are also going from the Interim [emissions reduction] The goals to better reflect our focus of short -term reliability and short -term affordability. “”
Last year, electric power plants in gas produced 45%of electricity in the state of Arizona, followed by nuclear energy at 27%, solar at 13%, 8%coal, hydroelectric energy at 4%and wind to 2%, depending on the United States Energy Information Administration.
In the meantime, energy transfer is seeing an increasing demand for gas from electric power plants and data centers, according to Tom longThe co-director general of the company.
“We continue to see a significant level of activity activity to supply, store and transport natural gas for electric power plants to gas, data centers and industrial manufacturing and Earth,” said Long during the company’s earnings call.
Early the transfer of energy signed its first Significant treatment with a hyperscaler -MCCREA, a data center behind the meter in Texas. Originally, the contract was 80,000 MMBTU/D, but it increased to 380,000 MMBTU/D and was able to go to 475,000 MMBTU/D, he said.
The energy transfer has signed three offers with data centers in Texas and is nearly two more, said McCrea.
