Southwest Gas Holdings, Inc. announced the successful closure of the Binding Open Season for its Great Basin Gas Transmission Company's 2028 Expansion Project, revealing overwhelming interest and high demand for natural gas in Northern Nevada. The results underscore the critical role of robust energy infrastructure in supporting an evolving energy landscape and fueling regional growth.

Great Basin Gas Transmission Company, a wholly owned subsidiary of Southwest Gas Corporation, initiated the Binding Open Season on January 28, 2025, to gauge interest in new and additional firm transportation service by November 1, 2028. Due to "strong and sustained interest," the initial April 30, 2025, closing date was extended to May 28, 2025, to accommodate prospective shippers and allow for the consideration of alternative in-service dates.

The indicative capacity requests received during the Binding Open Season reflect a significant need for increased natural gas capacity, vital for reliable, resilient, and on-demand energy delivery. This strong market signal validates the strategic importance of Great Basin's existing infrastructure and the ongoing demand for natural gas as a foundational energy source in the region.

The proposed 2028 Expansion Project is poised to deliver substantial benefits, subject to the successful negotiation and execution of binding precedent agreements and final approval from the Federal Energy Regulatory Commission (FERC). Southwest Gas Holdings estimates the project could lead to:

•             Incremental capacity totaling approximately 1.25 billion cubic feet per day, significantly boosting natural gas supply to Northern Nevada.

•             A minimum twenty-year term for each transportation service agreement, providing long-term energy security and stability for the region.

•             An incremental capital investment opportunity ranging from approximately $800 million to $1.2 billion, signaling a substantial commitment to infrastructure development and job creation.

These estimated impacts are currently preliminary and are subject to several factors, including final engineering design configurations, the successful negotiation of precedent agreements with each of the interested binding shippers (contemplated to be completed by the third quarter of 2025), FERC approval of the Project, and the actual cost of construction.

The Binding Open Season notice specified a requirement for a minimum twenty-year term for each transportation service agreement, with an anticipated expansion rate between $14 and $17 per Dth per month in lieu of the currently effective Rate Schedule FT-1 system tariff rate, depending on the actual contracted capacity.

The successful closure of this Binding Open Season marks a crucial step forward for the Great Basin Expansion Project, setting the stage for a significant enhancement of Northern Nevada's energy infrastructure.