Transwestern Pipeline delays Green Chile gas line to Feb 1, 2027, threatening Oracle's $165B project
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Transwestern Pipeline, a subsidiary of Energy Transfer, pushed the expected in-service date for its Green Chile Project to Feb. 1, 2027, six months later than planned, according to a regulatory filing Friday. The pipeline is designed to deliver up to 400 million cubic feet per day of natural gas to Oracle's Project Jupiter data center in Doña Ana County, New Mexico. The delay threatens the schedule for Oracle's proposed $165 billion data center project.
Pipeline Schedule
Transwestern Pipeline, a subsidiary of Energy Transfer, moved the expected in-service date for its Green Chile Project from Aug. 15 to Feb. 1, 2027, according to a regulatory filing Friday. The six-month slip applies to a line designed to carry up to 400 million cubic feet per day of natural gas to Doña Ana County, New Mexico. That volume equals roughly 0.4% of total Lower 48 U.S. gas production.
Oracle Project Jupiter
Oracle's Project Jupiter, a proposed data center development near the U.S.-Mexico border, could use as much as 2.5 gigawatts of gas-powered fuel cells supplied by Bloom Energy. Oracle told federal regulators in May that 'time is of the essence' and that Green Chile delays could jeopardize the broader project. New Mexico's State Land Office has repeatedly declined to approve Energy Transfer's proposed pipeline route across a small section of state-owned land. The project carries a $165 billion price tag.
Data Center Gas Demand
Energy Transfer began supplying gas this year to an Oracle data center campus near Abilene, Texas, and has signed agreements representing more than 6 billion cubic feet per day of new demand across data centers, utilities and power plants. The AI data center buildout is pushing developers toward dedicated generation, but behind-the-meter power still requires fuel, pipelines and permits. Oracle shares fell 4% Friday afternoon, while Energy Transfer gained 1.4%.
What's Next
The revised Feb. 1, 2027 in-service date now becomes the next milestone for both Transwestern and Oracle, with New Mexico's State Land Office still yet to approve the pipeline route. It remains unclear whether Oracle will adjust Project Jupiter's construction timeline or seek alternative power arrangements while the route decision is pending.
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Transwestern Pipeline delays Green Chile gas line to Feb 1, 2027, threatening Oracle's $165B project
