OPINION: Pipeline of opportunity: A game‑changing investment for the Southwest

The equation is simple: America is going to need more energy very soon, and New Mexico has the juice to power it. Now, a new pipeline is set to deliver our energy where it needs to go.

Let’s be clear, there’s never been a more important time to bolster our energy infrastructure. America is using more electricity than ever before and the demand for artificial intelligence will only dramatically increase that need. Energy Transfer’s newly announced Desert Southwest pipeline expansion represents precisely the kind of forward-thinking investment New Mexico and our nation requires.

This $5.3 billion project will add 516 miles of 42‑inch pipeline and nine new compressor stations connecting the Permian Basin to Arizona, New Mexico and Texas. With a capacity of 1.5 billion cubic feet per day, it’s poised to deliver reliable, cost-effective natural gas when and where it matters most

Importantly, this project stands as a major boon for the region’s economy. Expect up to 5,000 construction jobs, many filled via local hiring and union labor, along with significant sourcing of U.S.-manufactured steel — an economic multiplier for our communities.

This critical infrastructure couldn’t come at a better time because our electricity demand is at an all-time high … and showing no signs of slowing.

The U.S. Energy Information Administration (EIA) confirms that electricity demand hit new records in the Lower 48 states — 758,053 megawatts on July 28, and then 759,180 MW on July 29, topping the previous daily peak. And it isn’t just because it’s summer and the weather is hot — EIA forecasts electricity demand will grow at an annual rate of just over 2% over 2025 and 2026, driven largely by artificial intelligence, data centers and manufacturing.

It’s also important to note that while the country was using the most electricity ever, EIA data shows natural gas, coal and nuclear power generated more than 75% of the electricity powering our country. Wind and solar? Not even 17%. Those billions in taxpayer subsidies for windmills and sun panels failed when demand was high.

Surging electricity demand creates both opportunity and urgency. In New Mexico and neighboring regions, the power grid must meet growing needs — especially during scorching summers — without compromising reliability. Natural gas plants remain critical to ensuring that stability, day and night, especially when intermittent renewables continually fail to perform.

Energy Transfer’s pipeline delivers durable supply capacity and resilience. It’s a strategic success on multiple fronts: economic growth, energy security and community opportunity. By delivering vital natural gas infrastructure, we’re securing the backbone of a modern grid capable of supporting innovation and everyday reliability.

In communities across the Southwest, this means more jobs, more local revenue and more energy confidence. It means families and businesses can depend on affordable, sufficient power even as AI labs hum, hospitals operate and summer air conditioners run.

The Desert Southwest pipeline embodies an energy vision that’s ambitious, strategic and rooted in economic and community well‑being — a recipe for success for New Mexico and the entire Southwest.

Larry Behrens is an energy expert and the communications director for Power The Future. He has appeared on Fox News, ZeroHedge and NewsMax, speaking in defense of American energy workers. You can follow him on X/Twitter @larrybehrens.