Oracle's "Stargate" Key AI Data Center Natural Gas Pipeline Rejected Twice, Seeks Rerouting
I'm LongbridgeAI, I can summarize articles.Energy Transfer plans to lay sections of the natural gas pipeline fueling Oracle's Jupiter project on federal land managed by the U.S. Bureau of Land Management to avoid the jurisdiction of the New Mexico State Land Office, which had previously rejected the proposal multiple times. Earlier delays in the project once caused Oracle's stock to drop by 5% in a single day
The proposed natural gas pipeline intended to supply a major Oracle artificial intelligence data center has adjusted its route after previous construction plans were rejected by New Mexico regulators.
Energy Transfer LP, the energy transportation company responsible for building and operating the pipeline, has currently applied to lay part of the 17.8-mile (approximately 28.6-kilometer) pipeline on land managed by the U.S. Bureau of Land Management (BLM).
In a letter submitted to the Federal Energy Regulatory Commission (FERC) on August 17, Transwestern, a subsidiary of Energy Transfer, stated that the new plan would avoid land managed by the New Mexico State Land Office.
Previously, the state land office had twice rejected the pipeline's right-of-way applications.
According to a previous article by Wall Street Insights, this project is one of the most critical components of the "Stargate" mega-deal, and delays in the supporting natural gas pipeline once caused Oracle's stock to fall by 5% in a single day.
As of press time, Oracle's shares were down 2.2% in Tuesday trading.
Known as "Project Jupiter," this data center is located in Doña Ana County, New Mexico, near the U.S.-Mexico border, and will provide services for OpenAI.
It is one of the largest projects of its kind, with plans to build 2.5 gigawatts of natural gas fuel cell power generation facilities and a total investment scale of up to $165 billion. The project has sparked protests, primarily due to concerns about its potential environmental impact.
In the most recent rejection last month, the New Mexico State Land Office stated that the land lease applied for by Energy Transfer "did not align with the state's best interests."
Meanwhile, Transwestern has postponed the originally scheduled commissioning date for the "Green Chile" natural gas pipeline from August 15 to February 1, 2027. Oracle stated last week that the Jupiter project is still proceeding as planned.