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      Energy Transfer Reroutes Natural Gas Pipeline for Oracle's Project Jupiter

      Energy Transfer LP has announced a rerouting of its Green Chile Project pipeline in New Mexico after facing two rejections from state regulators. The pipeline, intended to supply natural gas to Oracle's Project Jupiter AI data center, will now cross federally managed land instead of state-owned land. This change comes after New Mexico Land Commissioner Stephanie Garcia Richard denied the company's application twice, first in March 2026 and again in July 2026.

      The Green Chile Project pipeline is designed to transport up to 400 million cubic feet of natural gas per day. The rerouting has delayed the project's in-service date from August 15, 2026, to February 1, 2027, extending the timeline by approximately five and a half months. Rather than attempt a third application for state approval, Energy Transfer opted for a new route under the jurisdiction of the US Bureau of Land Management.

      In addition to the pipeline changes, Oracle has modified its power strategy for Project Jupiter, addressing environmental concerns that may have influenced regulatory decisions. The company has shifted from an on-site natural gas plant to Bloom Energy fuel cells, which reportedly reduce emissions by around 92% compared to traditional power generation methods. Although the fuel cells still require natural gas, this transition significantly alters the emissions profile of the project.

      Despite the regulatory challenges, Project Jupiter has already made a substantial economic impact in Dona Ana County, creating nearly 700 onsite jobs and generating close to $80 million in tax revenues for the state and county by mid-2026. These developments provide Oracle and its partner, Yucca Growth Infrastructure, with considerable influence in discussions regarding the project's future in the region.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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