The Federal Energy Regulatory Commission’s (FERC) approval permits Transwestern to proceed with its previously announced two-part Phoenix expansion project. The expansion will include the construction of a new 260-mile pipeline from the Transwestern mainline to Phoenix and expansion of its existing San Juan lateral.

The Phoenix lateral, which will serve both residential and industrial customers in the greater Phoenix region, is expected to be in service in the second half of 2008.

Shelley Corman, senior vice president for Transwestern Pipeline Company, said: We are expanding capacity into the high-growth Phoenix market to meet the region’s growing demand for natural gas. Initially, we expect to deliver 500 million cubic feet per day to the market; longer-term, as demand for gas on our system grows, we are well positioned to rapidly expand our deliverability.