Powering Arizona’s Growth

Arizona’s economy and population are growing rapidly, creating greater demand for reliable energy. The Desert Southwest Expansion Project, an extension of Energy Transfer’s Transwestern Pipeline, is designed to meet that demand while fueling job creation and economic growth across the state.

The 42-inch underground pipeline will stretch 516 miles from Winkler County, Texas, through New Mexico, and into Coolidge, Arizona, delivering up to 1.5 billion cubic feet per day of natural gas. For Arizona, that means enough energy to cool more than 3 million homes, power industries, and support the state’s rapidly growing data center and technology sectors.

Why It Matters for Contractors

Construction of the Desert Southwest Expansion will directly benefit Arizona’s contracting community. Over the four-year build, the project is expected to create:

• Up to 5,000 jobs
• Opportunities for Arizona’s heavy civil, utility, mechanical, and specialty contractors
• Ongoing work in compressor stations, pipeline construction, road crossings, and site preparation

This is not just a pipeline—it’s a project that will touch nearly every part of the construction industry in Arizona.

Economic Benefits for Arizona Communities

The project is also a long-term economic driver:

• $12.5 million in annual property taxes for Arizona counties including Cochise, Graham, and Pinal
• Sales tax revenue from construction activity flowing into local communities
• 75 permanent jobs created for pipeline operation and maintenance

These investments strengthen schools, hospitals, and local infrastructure—helping Arizona communities thrive.

Partnering for Arizona’s Future

The Desert Southwest Expansion is backed by Arizona Public Service (APS) and Salt River Project (SRP)—both members of Arizona Chapter of the Associated General Contractors. Their involvement underscores the importance of collaboration between utilities, contractors, and public stakeholders to meet Arizona’s infrastructure needs.

At AZAGC, we advocate for projects like this because they:

• Support Arizona contractors with new opportunities
• Strengthen infrastructure to sustain economic growth
• Invest in local jobs and communities

Looking Ahead

Construction is expected to begin in 2028, with the pipeline entering service by 2029

When complete, the Desert Southwest Expansion will be one of the largest energy infrastructure projects in the region’s history.

For Arizona contractors, this is more than just another project—it’s a chance to help build the foundation for Arizona’s energy future.