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New Mexico AG challenges federal commission’s review of proposed Project Jupiter gas pipeline

A map of the proposed pipeline Energy Transfer submitted in its early 2026 application to the U.S. Federal Energy Regulatory Commission.
(Photo courtesy of FERC)

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sourcenm.com
A map of the proposed pipeline Energy Transfer submitted in its early 2026 application to the U.S. Federal Energy Regulatory Commission.

New Mexico Attorney General Raúl Torrez is pushing back against the U.S. Federal Energy Regulatory Commission’s review of a proposed gas pipeline intended to power the Project Jupiter data center, calling it “inadequate.”

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Texas-based Energy Transfer early this year asked federal regulatory officials to approve construction of a gas pipeline, known as the “Green Chile Project,” to serve the Oracle and OpenAI Project Jupiter data center under construction in Doña Ana County.

In a Monday filing with the commission, Torrez argued that federal regulatory officials have not adequately assessed the proposed pipeline’s environmental impact because their assessment did not include the environmental impacts of Project Jupiter itself. Source NM previously reported that the data center’s power system could emit more greenhouse gases annually than New Mexico’s largest cities combined.

“The commission is asking us essentially to consider the fuel line from a car’s gas tank to its engine wholly separate from the rest of the vehicle and to completely ignore the emissions coming out of the tailpipe,” Torrez wrote. “Project Jupiter in its current form cannot function without the pipeline, and this pipeline has no reason to exist other than to provide fuel for Project Jupiter.”

Torrez also wrote that regulatory officials aren’t meeting their responsibilities as described in the National Environmental Policy Act, which says that officials can only conduct an environmental assessment of a proposal like this — rather than a more exhaustive environmental impact statement — if the proposal does not have “a reasonably foreseeable significant effect” on the environment.

The Federal Energy Regulatory Commission did not immediately respond to a request for comment.

Plans for the pipeline initially described it as a $60 million project that would carry gas from El Paso to Project Jupiter. It fits into Energy Transfer’s broader Desert Southwest Pipeline Expansion Project, though, which aims to build a data center-serving pipeline that stretches from Texas to Phoenix.

The plan has hit several roadblocks in the months since then. New Mexico Commissioner of Public Lands Stephanie Garcia Richard, who is running as the Democratic nominee to be lieutenant governor, twice rejected Energy Transfer’s requests to build a portion of the pipeline on state trust land. In August, Energy Transfer’s federal regulatory filings showed that company officials expected the pipeline to be delayed to 2027.

Joshua Bowling, Searchlight's criminal justice reporter, spent nearly six years covering local government, the environment and other issues at the Arizona Republic. His accountability reporting exposed unsustainable growth, water scarcity, costly forest management and injustice in a historically Black community that was overrun by industrialization. Raised in the Southwest, he graduated from Arizona State University's Walter Cronkite School of Journalism and Mass Communication.