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Great Basin Expansion Project: Responding to Natural Gas Demand in Northern Nevada

The Great Basin Expansion Project is generating significant interest among stakeholders in the natural gas industry, particularly in Northern Nevada. Announced by Southwest Gas Holdings, Inc. on June 5, 2025, the project marks a pivotal moment in meeting the increasing needs for natural gas transportation services in the region.

Overview of the Expansion Project

The project, executed by Great Basin Gas Transmission Company— a subsidiary of Southwest Gas Holdings— has successfully concluded its Binding Open Season for the 2028 Expansion Project. This initiative aims to enhance firm transportation services as the energy landscape continues to evolve. Given the high demand observed during this phase, it signals the critical importance of reliable energy delivery in the area. CEO Karen Haller emphasized the project's significance, stating, "The level of interest we received validates both the importance of our infrastructure and the ongoing need for dependable energy delivery in Northern Nevada."

Project Details and Expected Outcomes

The responses from potential shippers during the Binding Open Season offer promising insights into the project's future.

• - Incremental Capacity: Approximately 1.25 billion cubic feet per day is anticipated as a result of the expansion. This enhancement aims to ensure that the region can accommodate increasing energy needs reliably.
• - Long-Term Agreements: Each transportation service agreement will have a minimum duration of twenty years, reflecting a commitment to ongoing energy solutions in the area.
• - Capital Investment: The project is projected to involve $800 million to $1.2 billion in capital investments, fostering economic growth and infrastructure enhancement in Northern Nevada.

The project's success hinges on multiple factors, including the finalization of binding agreements with shippers and approval from the Federal Energy Regulatory Commission (FERC).

The Binding Open Season and its Significance

The Binding Open Season was initially announced on January 28, 2025, with the objective of gauging interest from existing and potential shippers for additional firm transportation services ready around November 1, 2028. Due to overwhelming demand, the deadline for this phase was extended, allowing shippers more time to engage in discussions and finalize agreements. The terms outlined indicate a projected expansion rate between $14 and $17 per Dth per month based on contracted capacity, highlighting the financial viability of the project.

Regional Impact and Service Enhancement

Southwest Gas Holdings asserts that this expansion will significantly bolster the availability and reliability of on-demand energy in Northern Nevada. By strengthening its existing 898-mile transmission system, Great Basin Gas aims to enhance service capabilities to support the burgeoning demand in both Northern Nevada and the greater region. This infrastructure investment is expected to spur economic growth and foster developments aligned with local energy needs.

Guidance and Future Steps

While the projected impacts of the project are not included in SouthWest Gas Holdings' current guidance for 2025, the company remains optimistic about the project's implications, which may become clearer with the completion of pending agreements and regulatory approvals. Until then, the firm continues to focus on its annual capital budgeting and planning processes, evaluating how this expansion fits into the broader strategic vision.

About Great Basin Gas Transmission Company

Operating under the umbrella of Southwest Gas Holdings, Great Basin Gas Transmission Company, formerly known as Paiute Pipeline Company, manages a vital interstate pipeline system connecting critical regions from the Idaho-Nevada border to the Nevada-California border. Its infrastructure includes a liquefied natural gas (LNG) peak shaving facility located near Lovelock, Nevada, highlighting its commitment to providing robust energy solutions.

Conclusion

The Great Basin Expansion Project serves as a timely response to the rising demand for natural gas in Northern Nevada. By reinforcing its infrastructure and enhancing service capacity, Southwest Gas Holdings demonstrates its dedication to supporting the community's energy needs in a rapidly evolving energy landscape. As the project progresses through the necessary negotiations and approvals, stakeholders are keenly watching its developments, eager to witness its impact on regional growth and sustainability.