Great Basin Gas Transmission, a wholly owned subsidiary of Southwest Gas Holdings, closed its second supplemental open season for the 2028 expansion project and executed binding precedent agreements with shippers that collectively represent nearly 800 million cubic feet per day of capacity requests. The agreements provide a firm revenue base that underpins the company’s plan to invest approximately $1.7 billion in new pipeline infrastructure, with the project slated to enter service on November 1 2028.
The binding agreements de‑risk the expansion by converting demand interest into contractual commitments, allowing Great Basin to move forward with the Federal Energy Regulatory Commission pre‑filing process and detailed engineering. Management estimates the project will generate an incremental margin of $215 million to $245 million annually once in service, a significant contribution to Southwest Gas’s regulated earnings stream and a key lever for future growth.
Southwest Gas has recently strengthened its balance sheet through the completion of its Centuri separation, which freed up capital and reduced debt. The company’s S&P credit rating was upgraded to BBB+ with a stable outlook, reflecting the improved financial position and the new revenue‑generating pipeline capacity. The expansion aligns with Southwest Gas’s long‑term strategy to grow organically in high‑demand markets while maintaining disciplined capital allocation.
"Demand for reliable and flexible natural gas transportation service in Northern Nevada continues to grow," said Karen S. Haller, President and CEO of Southwest Gas Holdings. “The executed precedent agreements confirm that shippers are willing to pay for the capacity we are building, and they give us the confidence to proceed with the FERC pre‑filing and engineering work that will bring the project to life.”
The project’s regulatory path is straightforward: after the pre‑filing, Great Basin will submit a full FERC application, obtain rate case approval, and then begin construction. The company’s prior binding open season in May 2025 secured 1.25 billion cubic feet per day of capacity requests and an estimated $800 million to $1.2 billion investment, demonstrating a consistent track record of scaling infrastructure in response to market demand.
For investors, the binding agreements signal a tangible step toward realizing Southwest Gas’s growth targets. By securing a revenue base now, the company can allocate capital more efficiently, reduce financing costs, and accelerate the return on the $1.7 billion investment. The incremental margin projection and the project’s alignment with regional demand trends reinforce the company’s position as a leading regulated natural gas utility in the western United States.
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