Desert Southwest Pipeline Project

The Desert Southwest Pipeline is an approximately 520-mile natural gas expansion project by Energy Transfer built to supply the massive energy demands of new artificial intelligence (AI) data centers in Arizona.

Project Overview

  • Location of Project: Arizona, New Mexico

  • Type of Project: Pipeline

  • Timeline: 2025-2029

Project Details

Energy Transfer has announced the 520-mile Desert Southwest Pipeline, a 48-inch underground project designed to transport 2.3 billion cubic feet of natural gas daily from the Permian Basin to the Phoenix area. This $5.3 to $5.6 billion initiative aims to power the rapidly expanding energy demands of AI data centers in Arizona by supporting local gas-fired electric plants. Following increased demand, the project was upgraded shortly after its 2025 announcement and is currently undergoing federal environmental review. Energy Transfer intends to have the pipeline fully operational by the fourth quarter of 2029, pending regulatory approvals.

Case Results

State: Pennsylvania (Northampton County)

Case Type: Pipeline takings

Initial Offer: $42,880

Sever Walker Padgitt Result:

$71,183

State: Pennsylvania (Northampton County)

Case Type: Pipeline takings

Initial Offer: $21,380

Sever Walker Padgitt Result:

$73,350

State: Pennsylvania (Northampton County)

Case Type: Pipeline takings

Initial Offer: $15,000

Sever Walker Padgitt Result:

$100,000

State: Pennsylvania (Luzerne County)

Case Type: Pipeline takings

Initial Offer: $101,780

Sever Walker Padgitt Result:

$249,157

State: Pennsylvania (Luzerne County)

Case Type: Pipeline takings

Initial Offer: $41,230

Sever Walker Padgitt Result:

$100,931

State: Pennsylvania (Columbia County)

Case Type: Pipeline takings

Initial Offer: $80,000

Sever Walker Padgitt Result:

$110,000

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