Oracle Presses FERC to Fast-Track Gas Lateral for New Mexico Project Jupiter
Oracle has again asked FERC to quickly authorize Transwestern Pipeline’s Green Chile Project, a 17.77-mile, 24-inch line in Doña Ana County, New Mexico, that would fuel the power plant for its Project Jupiter data center campus, Pipeline & Gas Journal reports. The request was filed in docket CP26-80.
Market Impact
The pipeline would deliver about 400 million cubic feet per day of firm transportation service. Transwestern holds a binding precedent agreement with Green Chile Ventures, an unaffiliated shipper, for 100% of the capacity. The agreement runs 17.5 years, and deliveries would ramp up over a relatively short period rather than start at the full 400 MMcf/d.
Oracle said the gas is essential for a dedicated microgrid that uses fuel cell technology, avoiding stress on the wider transmission and distribution system. FERC staff has issued an environmental assessment recommending a finding of no significant impact, with staff’s environmental conditions attached to any authorization. The comment period has closed and Transwestern has filed its responses, so Oracle argues no further procedural steps are needed. “Time remains of the essence,” Oracle said, warning that delay “threatens to delay Project Jupiter’s operations and the resulting jobs, economic activity, and community benefits.”
Where the Dispute Stands
Transwestern told FERC the precedent agreement remains in full force, that milestone dates cited by one commenter are target dates that do not let the shipper terminate, and that an environmental impact statement is not required. It said construction would begin shortly after it receives and accepts its Natural Gas Act Section 7(c) certificate. Investing.com reports that environmental groups and New Mexico Attorney General Raúl Torrez have pressed FERC to widen its review to cover the data center and pipeline together. It also reports the pipeline’s in-service timeline has slipped to February 2027 after the route was moved from state land onto federal land.
What It Means for Subcontractors
Oracle’s filing says 1,230 New Mexico residents, including 630 from Doña Ana County, have worked on Project Jupiter. It projects nearly 5,800 jobs at peak construction and more than 3,100 jobs across the county once the four-building campus is operating, including 1,500 direct operational jobs. Investing.com puts the regional output at up to $1.1 billion a year during the build.
For pipeline, civil and electrical subs, the near-term signal is timing. Pipeline construction is expected to start only after FERC issues the certificate, and the source gives no date for that order. Investing.com also reports that Oracle has considered trucked natural gas for early commissioning, which would not replace the pipeline for full-scale operation. The filings reviewed do not name a pipeline construction contractor.
