Great Basin Gas Expansion Draws Strong Shipper Demand in Northern Nevada
(P&GJ) — Southwest Gas Holdings announced June 5 that its subsidiary, Great Basin Gas Transmission Company, has closed the Binding Open Season for its 2028 Expansion Project, drawing significant interest from shippers seeking additional natural gas capacity in Northern Nevada.
The response to the Binding Open Season underscores growing demand for reliable, on-demand energy in the region, with strong participation from both existing and prospective customers. The project aims to expand Great Basin’s firm transportation service to support economic development and energy reliability across the company’s 898-mile transmission system.
“The level of interest we received validates both the importance of our infrastructure and the ongoing need for dependable energy delivery in Northern Nevada,” said Karen Haller, Chief Executive Officer at Southwest Gas Holdings. “We look forward to collaborating with the potential shippers to finalize agreements that meet their energy needs and fuel regional growth.”
Estimated Project Impacts
Pending successful contract negotiations and federal approvals, Southwest Gas estimates the expansion will include:
- Approximately 1.25 billion cubic feet per day of incremental transportation capacity
- Minimum 20-year terms for each transportation service agreement
- Capital investment of approximately $800 million to $1.2 billion
These estimates are subject to final engineering, successful execution of precedent agreements—expected by Q3 2025—and approval from the Federal Energy Regulatory Commission (FERC).
Binding Open Season Summary
Great Basin initiated the Binding Open Season on January 28, 2025, to gauge shipper interest for firm transportation service starting as early as November 1, 2028. Due to strong interest, the original closing date of April 30 was extended to May 28, 2025, to accommodate additional potential shippers and explore alternative in-service dates.
Transportation agreements will require a minimum 20-year commitment, with expansion rates anticipated between $14 and $17 per Dth per month, depending on contracted capacity and differing from the current Rate Schedule FT-1 tariff.
Regional and Financial Implications
The proposed expansion would enhance energy availability in Northern Nevada, bolstering Great Basin’s existing infrastructure and helping meet rising market demands. While the project's potential impacts are not currently reflected in the company’s 2025 financial guidance, Southwest Gas noted it may update its outlook following the successful completion of precedent agreements and internal capital planning.
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