Federal Review Underway for 17-Mile Dedicated Gas Pipeline Serving Major Data Center

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Federal Review Underway for 17-Mile Dedicated Gas Pipeline Serving Major Data Center

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Federal Energy Regulatory Commission (FERC) Headquarters in Washington, DC (© Shutterstock/Mark Van Scyoc)
Federal Energy Regulatory Commission (FERC) Headquarters in Washington, DC (© Shutterstock/Mark Van Scyoc)

A proposed 17.7-mile natural gas pipeline designed to fuel a massive private data center is facing federal scrutiny, with critical regulatory deadlines looming this April.

The Green Chile Pipeline Project would serve a single customer: the Project Jupiter data center. 

According to filings with the Federal Energy Regulatory Commission (FERC), the 24-inch-diameter line is intended to power on-site microgrids, a move developers say will prevent straining the local public utility grid.

The project, spearheaded by Transwestern Pipeline LLC, a subsidiary of Houston-based Energy Transfer, carries a price tag of roughly $60 million. If approved, it would deliver more than 400,000 dekatherms of natural gas daily. 

To put that in perspective, the average U.S. household consumed just 0.694 dekatherms in all of 2020, according to the U.S. Energy Information Administration.

Despite the scale, the project faces a tight window. Energy Transfer has requested to begin construction by April 15, aiming for an operational date of Aug. 15. 

However, FERC is not expected to issue its environmental assessment and final decision until April 13, the same day the public comment period closes.

Environmental advocates are questioning the haste. David Baake, a New Mexico environmental attorney, noted that Project Jupiter is still awaiting air quality permits from the New Mexico Environment Department.

"It’s very premature for them to be seeking permission to start building this pipeline," Baake said. "Until the power plant is authorized, they cannot construct it. Otherwise, this could end up being a pipeline to nowhere."

The route primarily traverses federal land, but a half-mile stretch requires a right-of-way from the New Mexico State Land Office. Spokesperson Joey Keefe confirmed that no final decision has been made, noting the review typically takes several months.

Energy Transfer did not respond to requests for comment regarding the project's aggressive timeline. For now, the fate of the state's potential largest power source remains tied to the April 13 federal deadline.